Projects - Asset Restructuring
Forest Resort Group
Management and restructure of distressed hospitality assets
Summary
- Tourism and Hospitality
- Novotel Forest Resort, Creswick, VIC
- Managing Controller for financier
- Senior debt ($80m)
Issues
- Accor operated 144 strata room hotel, 18-hole PGA championship golf course, 25 residential lots (+105 lot subdivision) and waste water treatment plant (WWTP)
- Home of the Victorian PGA
- Hotel trading at 50% occupancy (golf not viable) and AU$1m+ consolidated loss pa
- Body corporates of land owners and room owners dysfunctional
- 53 rooms sold to 3rd party investors, with returns well below expectations.
- Underutilisation of conference rooms
- Dispute with water authority regarding WWTP
- Four prior receivers failed to sell over six years, through various public campaigns
- Various planning issues
Solution
- Closed WWTP to minimise loss
- Completed critical capital improvements
- Achieved working relationships with land and room owners body corporates
- Relaunched resort golf membership program
- Improved hotel trading through intensive management of Accor
Outcome
- Identified off-market buyer at a 40% premium to valuation within 18 months