Hospitality Experience

Hospitality Debt Restructuring

Horwath HTL has participated in debt restructurings, providing tailored solutions to optimize terms, interest rates, and payment conditions, helping restore the financial viability of our clients.


Project Scope

Our consultancy was engaged to assist a hospitality client with debt restructuring to address financial challenges and enhance liquidity during a period of market uncertainty. The client sought a comprehensive strategy to renegotiate existing liabilities, optimise cash flow, and position the business for long-term stability and growth.

The engagement began with an in-depth review of the client’s financial structure, including an assessment of existing debt obligations, interest rates, repayment schedules, and covenant terms. We conducted a detailed analysis of the client’s cash flow, operational performance, and market conditions to determine their financial capacity and identify potential areas for improvement.

Based on this analysis, we developed a tailored debt restructuring strategy. This included renegotiating loan terms with existing lenders to secure lower interest rates, extended repayment periods, and revised covenants that better aligned with the client’s financial position. Where appropriate, we explored opportunities for refinancing through alternative funding sources to optimise the capital structure.

Our team facilitated discussions with creditors, presenting a clear business case supported by detailed financial models and projections. This transparent approach built trust with stakeholders and fostered a collaborative environment for negotiations. Simultaneously, we provided guidance on cost-reduction strategies and operational efficiencies to enhance the client’s ability to meet revised financial commitments.

The final outcome was a successfully restructured debt framework, which improved liquidity, reduced financial pressure, and provided the client with greater flexibility to navigate future challenges. By aligning their financial obligations with their operational capabilities, the client regained stability and positioned themselves for sustainable growth in a competitive market. This comprehensive approach ensured the client could focus on long-term strategic goals while maintaining the confidence of their financial partners.

Hospitality
Transaction Advisory
Assets