Hospitality Receiver, LLC, an affiliate of Virginia Beach based Afton Hospitality Management (www.aftonhospitality.com
), has been retained by a regional lender to manage the property, now known as the Capital Hotel, following the recent foreclosure.
Nationwide, there are tens of billions of dollars in non-performing hotel notes. While some lenders are postponing the inevitable with an “extend and pretend” strategy, others are addressing the issues head-on. “In some cases that solution is a work-out or discounted note-sale, but often it involves taking control of the property either through a receiver or foreclosure” said Tim Stiffler, Afton’s president who was a hotel lender for 10 years prior to becoming a hotel developer, owner and operator.
When managing bank owned hotels, such as the Capital Hotel, Afton’s mission is to immediately stabilize the hotel operations, maximize the value of the property and assist the lender in positioning it for sale. This includes negotiating with the franchise, recommending appraisers/brokers, coordinating property improvements, and implementing professional operations management. Upon foreclosure, lenders generally choose to keep hotels open because an operating hotel attracts significantly higher bids than a closed hotel.
Ed Denton, executive vice president at Afton, noted, “We recognize banks are not hotel owners by choice, rather by circumstance, and we’re pleased to offer value-add solutions that minimize the operational burden and maximize the asset value.”
About the Capital Hotel
The Capital Hotel is a 121-room property built in 1989 that formerly operated under the Comfort Inn and Motel 6 franchises. It is conveniently located off Interstate 95, in Ashland near Randolph Macon College, between the cities of Richmond and Fredericksburg, VA. The property features a large courtyard area, seasonal swimming pool, children’s wading pool, large lobby area and guest vending.
About Hospitality Receiver, LLC
Hospitality Receiver, LLC is an affiliate of Afton Hospitality Management, a hotel investment and management company that provides services to owners, investors and financial institutions. The principals have extensive experience in all aspects of hotel management, development and ownership, including Marriott, Hilton, Starwood, IHG, Choice and Wyndham branded properties in various geographic markets. The company’s services include full service property management, receivership, sales and market analysis, physical plant assessments, franchise negotiations, on‐site property reviews and asset management.