Jay Litt, partner with Resolution Services tells GlobeSt.com that the play was opportunistic and the value-add component on the property will involve operational changes in addition to a different brand, which he declined to discuss. "We love hotels that were recently renovated," he adds. Sheraton Orlando Downtown at 60 South Ivanhoe Blvd. recently underwent a $10 million renovation.
The hotel went into foreclosure and was auctioned in September. Lender Gramercy Investments, which had a judgment of more than $44 million against the hotel's former owner, bought the asset.
With its first hospitality under its belt, Resolution Services is on the lookout for more. Litt says the search is taking the company throughout the United States, Central America and the Caribbean. Full-service properties are the assets of first choice, he adds, though he and partners Eric Ewoldt and Ed Miller would also look at smaller properties with food and beverage components.
"We look at the bones of the hotel," Litt continues. "We're operators, not finance; we look at the potential for restructuring operations to improve an asset." Such restructuring could include insurance, real estate taxes, purchasing and procurement, and machinery obsolescence.
Though the market is terrible for the hotel sector right now, Litt points out that this is a good time for well-capitalized companies to come in and change things around. "Smart buyers and prudent operators are great for assisting lenders, and helping them build value in a asset, so it can sell for more," he adds.
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