The fallout from the financial melt down of 2008 left many hotel and resort owners severely over-leveraged and underwater. Rapidly declining property values left owners with no hope of refinancing and nobody willing to pay the price needed to satisfy the debt. The result was default and either foreclosure or simply giving the property back to the lender.
This scenario created a fertile environment for an opportunistic firm like Inner Circle Investments.
As skilled negotiators and disciplined buyers, we buy properties at deep discounts, often as little as 20 cents on the dollar. With a relatively low property basis, a well conceived renovation positions the hotel to be at the top of the competitive market and leads to increased revenue. At the same time we systematically implement a program of cost control and operating efficiency that dramatically improves bottom line operating margins.
In some cases the property can be converted into a multi-use asset that takes advantage of an otherwise oversized hotel to include some combination of a small, limited service hotel, market rent apartments, senior housing, retail and/or timeshare. The end result is a real estate asset with lower risk, greater cash flow, enhanced profitability and significantly increased value.