NEW YORK CITY-Denver-based Hotel Real Estate Counselors has formed a joint venture with Stamford, CT-headquartered Rochdale Capital Advisors and and Carlsbad, CA-based Real Capital Markets (RCM) to create Hotel Debt Trader, a hotel loan sale advisory group. The advisory, based in New York City, will focus on performing, subperforming, nonperforming and REO assets. The companies will combine HREC’s hotel and property sales expertise with Rochdale’s note sale expertise.
Although not exclusively, the advisory's focus will mainly be on the sales side to meet a perceived market demand as a number of distressed and REO hotel assets are anticipated to come onto the market by the end of 2011.
“We know that on the property brokerage side, we are evaluating somewhere around 60 assets that owners are considering taking to market,” Geoff Davis, president of HREC Investment Advisors tells GlobeSt.com. “We also believe the potential volume is high on the note sale side. There are still a lot of persistent problems in the economy and owners want to know if they can liquidate their positions, if they can still get good value at the end of the year as opposed to waiting. That holds true across assets.”
Davis says that the creation of this advisory group is in response to that market demand and a result of an advantageous relationship between the three partner companies. Both HREC and Rochdale have been long-time associates of RCM, which brought the two complementary companies together. “If you’re talking about hotel notes specifically, it really matters to have a hotel expert involved in the process,” he tells GlobeSt.com. Questions arise in a disposition process of the true value of an asset, marketplace fluctuations and the detriments or benefits of a workout.
“With our hotel expertise coupled with Rochdale’s note sale expertise, it’s a potent combination,” Davis says. “It’s not a wholesale solution. It’s not mass marketing and hoping for the best. It’s a retail solution for clients that are trying to maximize the value of their paper.”
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