AMA - Hotel Repositioning Nightmare
Today is another AMA episode. This question comes from Jasdeep in N. Michigan. I’m going to summarize a very lengthy question.
We acquired a hotel from an absentee owner who had allowed the hotel to fall into disrepair over the past 20 years. The property had become a blight in the city. We are experienced hotel owner operators. We had a hard time finding a contractor to take this project. We did ultimately hire a contractor who acted unprofessionally and eventually worked to sabotage the project. In the ensuing dispute, the contractor caused city inspections resulting in a red tag being placed on the building, revoking the certificate of occupancy, and filed a mechanics lien on the property in excess of $400,000. They even contacted the local press who wrote a defamatory article on the hotel.
I would truly appreciate any thoughts you may have on our situation.
Jas this is a great question. There are a lot of moving parts to the situation.
There are really several different directions that we can take this discussion.
1) What were some of the root cause failures that seem to have happened in this case?
2) How to fix the situation from where you are now?
3) Where are there possibly remaining blind spots?
Host: Victor Menasce