Six Tips Can Help Business Owners Avoid Foreclosure and 'Keep It'

By Nitin Shah Chairman & CEO, Embassy National Bank | January 22, 2012

Are you a hotel owner facing foreclosure or receivership? You're not alone. More importantly, you have options and strategies available to avoid foreclosure or receivership – or both.

In today's economic environment of dramatically declining revenues, hoteliers are among the thousands of small business owners who have fallen behind on their bank loan payments and are on the brink of foreclosure or receivership.

Even if a hotel loan is current, the value of underlying real estate collateral may have fallen to near or below the amount of the loan. This can cause a bank to demand immediate repayment of the loan and initiate foreclosure.

Such unfortunate scenarios are being repeated all too often across America and in many cases are being made worse because the loan collateral represents a large percentage of a hotelier's accumulated net worth – so losing those real estate assets literally means losing his or her life savings. At that point, once successful hotel owners can find themselves on the brink of bankruptcy.

While the threat of foreclosure or receivership is intimating, you can avoid losing your real estate assets. However, you must anticipate the problem, plan a course of action, and proactively maintain control of your property.

Here are six tips that can help you forestall foreclosure on your property so you can "KEEP IT."

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Coming up in March 2019...

Human Resources: An Era of Transition

Traditionally, the human resource department administers five key areas within a hotel operation - compliance, compensation and benefits, organizational dynamics, selection and retention, and training and development. However, HR professionals are also presently involved in culture-building activities, as well as implementing new employee on-boarding practices and engagement initiatives. As a result, HR professionals have been elevated to senior leadership status, creating value and profit within their organization. Still, they continue to face some intractable issues, including a shrinking talent pool and the need to recruit top-notch employees who are empowered to provide outstanding customer service. In order to attract top-tier talent, one option is to take advantage of recruitment opportunities offered through colleges and universities, especially if they have a hospitality major. This pool of prospective employees is likely to be better educated and more enthusiastic than walk-in hires. Also, once hired, there could be additional training and development opportunities that stem from an association with a college or university. Continuing education courses, business conferences, seminars and online instruction - all can be a valuable source of employee development opportunities. In addition to meeting recruitment demands in the present, HR professionals must also be forward-thinking, anticipating the skills that will be needed in the future to meet guest expectations. One such skill that is becoming increasingly valued is “resilience”, the ability to “go with the flow” and not become overwhelmed by the disruptive influences  of change and reinvention. In an era of transition—new technologies, expanding markets, consolidation of brands and businesses, and modifications in people's values and lifestyles - the capacity to remain flexible, nimble and resilient is a valuable skill to possess. The March Hotel Business Review will examine some of the strategies that HR professionals are employing to ensure that their hotel operations continue to thrive.