James O'Connell, Principal of O'Connell
Hospitality Group, LLC and Robert J. Crawford, President of Hospitality
Resolutions, Inc have announced the formation of a new venture called
Collateral Strategies, Inc. Collateral Strategies ("CS") will provide
lenders, loan servicers, borrowers and investors with focused strategic
plans designed to assist with portfolio and single asset credit
recovery. CS's Credit Strategies will identify the maximum recoverable
value for both the asset and the collateral debt. CS's team will assist
its clients in achieving optimal values for troubled hospitality loans
and investments.
Bob Crawford and Jim O'Connell worked together at the Bank of New
England in the early 90's. As leaders of the BNE Hotel Group, they
provided internal strategic assistance to lenders and workout officers
as they negotiated resolutions for troubled loans. Their in-depth
knowledge of the work-out process allows them to assist borrowers
facing critical maturity dates as well.
"There is a crisis of capital, credit and confidence impacting
financial markets today, just as there was in 1990. Jim O'Connell and I
are combining our knowledge of the lending and workout specialties with
our combined hotel industry expertise to create strategic plans that
achieve optimal values for both lenders and investors." Said Crawford,
CEO of Collateral Strategies.
O'Connell Hospitality Group will continue to be a leader in hotel
sales and financing transactions. However, with $700 Billion of
commercial paper maturing in 2011 and 2012, the credit crisis of 2008
and beyond will have to be resolved upstream. While foreclosures will
still occur, early credit resolutions typically lead to far greater
recovery values. The CS Team will identify critical paths to achieving
appropriate recoveries with cost-effective strategies.
O'Connell added "Hotels, after all, are capital intensive, operating
businesses valued almost exclusively on cash flow — Resolving hotel
debt and recovering hotels values are, for most, challenging
objectives. Bob and I have worked on over a $Billion in hotel debt and
OHG has sold over $Billion in hotel assets. Our combined experiences
are invaluable for lenders and borrowers in today's commercial real
estate marketplace. Based upon feedback from clients across the
country, we believe that this venture will provide our clients with
successful results."
www.oconnellhospitality.com
