Put to: Daniel H. Lesser and the proposed lender’s hospitality credit lead.
Why it matters to buyers: The OCC’s commercial-real-estate lending handbook specifically lists hotel revenue seasonality, management quality, franchise terms and FF&E replacement needs among property-level considerations. This supports examining the timing and durability of cash flow rather than relying on one annual ratio. (occ.treas.gov)
Draft framing of a good answer: Request a monthly liquidity model using the actual financing terms. Include collection timing, payroll, tax and insurance payments, capital draws, reserve movements, debt service and required minimum cash.
Ask the lender to explain covenant definitions, testing periods, cash-management triggers, release conditions, extension requirements and refinancing assumptions. Distinguish accounting earnings, cash in bank accounts and cash legally available for distribution.
Stress a combination of weaker room contribution, delayed reopening and slower ramp-up. Choose stress magnitudes from the property’s evidence and financing risks, not an unexplained standard percentage.
Sharp follow-up: “On what date does unrestricted cash reach its low point, and who is committed to fund the gap?”
Evidence to request: Monthly base/downside cases, covenant calendar, reserve mechanics and documented funding commitments.
Interview status: No expert response has been recorded.