When a hotel loan gets in trouble, a lender should immediately perform a Comprehensive Situation Analysis. Borrowers should do the same and be fast to approach lenders with candor and an actual plan demonstrating what is needed and how it will work. This Comprehensive Situation Analysis is the foundation for making some of the most important decisions that the lender and borrower will face on what to do with a distressed loan or asset. When the Comprehensive Situation Analysis is completed, what’s next? What do the amassed facts indicate? How do they tell the parties what to do? What are the alternatives for dealing with a troubled hotel loan? Basically, the alternatives for a lender with troubled hotel asset are:

1. Do nothing (or sell the loan)

2. Workout the loan

3. Appoint a receiver

4. Seek a deed-in-lieu

5. Commence foreclosure

6. Seek Relief in bankruptcy proceedings

The matrix below shows how many of the relevant factors will suggest the appropriate alternative to select.

For matrix please visit below mention link :

https://hotellaw.jmbm.com/files/2020/03/Alternative-Strategies-for-Trouble-Loans.pdf