Amidst significant challenges, Stoney Creek Hotels faced a pivotal moment due to two unexpected calamities – the loss of its dynamic founder in March 2020 and the impacts of the COVID pandemic. The successor Chairman and the newly-appointed CEO assembled an executive leadership team to face the uncertainty and to decide whether to pare some assets or focus on reinforcing the existing base to operate as a thriving hotel company.

Choosing the latter path, the team committed to operational improvements, setting their sights on the future of SCHC and asking FCA to provide support and guidance in this endeavor. FCA assisted SCHC in –

• addressing impending loan maturities and right-sizing SCHC’s debt obligations
• establishing new management and license agreements to accommodate new institutional debt and its ongoing operating commitments
• creating key performance indicators for its senior leadership team and
• enhancing growth initiatives for its management and brand business.

In July 2023, due to excellent performance at each property, we completed the refinancing of the entire owned portfolio; the result –  11 refinanced properties (including a land purchase), two of which were ground lease properties with municipalities; four separate loans, all but one non-recourse; ≈ $65 million of loans with excellent DSCR’s, a new institutional-quality Hotel Management & License Agreement, a coordinated and hard-working leadership team and a long-term outlook that is wholly positive.