One year into the coronavirus pandemic, the European hotel industry still faces a great level of uncertainty. With several government support packages and ways of restructuring, the industry is responding differently in each country to ensure businesses can continue to be viable in the aftermath of COVID-19.
In the UK, employee furlough schemes, business loans and suspensions on evictions have allowed the industry to continue trading and prevent the detrimental effects of lockdowns. However, there are still tough times ahead for the industry and Kate Nicholls, of trade body UKHospitality, says businesses need “enhanced grant support to keep venues alive and a solution to the ongoing rent debt problem that continues to linger over the sector.”
As owners and managers of hotels are left with plummeting occupancy rates, they now need to work out how to pay debt-related obligations and keep their hotel business afloat. Debt restructuring is a strategy that can help to find suitable funding and refinancing options to ease the pressures of trading difficulties, especially during these unprecedented times.
What is debt restructuring?
Debt restructuring is a process that allows businesses experiencing financial difficulties to refinance existing debt obligations. It makes debt more manageable and can provide much-needed flexibility to businesses that need it in the short term.
How can debt restructuring help my hotel business?
If you are unable to meet your loan repayments to a commercial lender for your hotel business, you may feel under extreme pressure and your livelihood could well be at risk. A restructuring agreement can help to make your debt more manageable and ensure that once the pandemic passes, your hotel can still run effectively, and you and your employees will still have a job.
There are several ways this can be achieved but negotiating the terms of your debt payments with your lender can help you to secure positive outcomes and maintain your financial relationships.
Debt restructuring experts
Here at Stewart Hindley, we are experts in debt restructuring within the hospitality industry and will work to secure the best possible outcome for your hotel. We will help to guide you through the complete process and act on your behalf to reach a consensual agreement with your commercial lender.
Firstly, we will complete a full review of your business and negotiate with your commercial lender to agree on a recovery strategy for your hotel. We will also introduce new lenders who may be able to refinance your existing debt and achieve a repayment forbearance period whilst the restructuring takes place.
Contact Stewart Hindley today
If you’re a hotel owner or manager trying to navigate these challenging times and need experienced support and help with your business finances, please don’t hesitate to get in touch. We can look at your individual circumstances to help you secure the debt restructuring your hotel business needs.
