Barrows Hotel Enterprises starts offering asset based lending to hotels
DUBAI, United Arab Emirates, Nov. 19, 2021 (GLOBE NEWSWIRE) — Barrows, the provider of hotel investment and advisory services for hotels in the Middle East and Africa, starts offering commercial asset-based financing to distressed hotels.
Many hotels have start-up problems as a result of the global pandemic, which has left many hotels with a weak cash flow position combined with high debts. To strengthen the industry from within, alternative financing sources are necessary.
Barrows Hotel Enterprises has been involved in hotel investment and hotel development for over 10 years. The company advises many hotel brands in the Middle East and the African continent with management advice and how to improve their position in the market.
“Strengthening the financial position is one of the most important elements. Thanks to our deep knowledge of the hotel industry, we are able to make a real difference and offer a hotel company a healthy future. If the hotel has a healthy profitable operation, it is much better able to meet its financial obligations to investors, landlords and suppliers,” said Chairman Erwin Jager of Barrows Hotel Enterprises.
Debtors who pay late have a major impact on a hotel’s cash flow. If too much money is tied up in invoices, it can cause problems. With factoring it is possible to improve the income stream and invest again in the future. Now the influence of the global pandemic is great, but after every crisis come better times. Even then, the need for direct access to cash will remain high. That’s what makes factoring so interesting. If a hotel can have liquid assets more quickly, it is better able to pay suppliers and investors. Alternative financing sources are therefore much more interesting.
“Getting cash available almost immediately is one of the reasons for hotel entrepreneurs to further investigate the options for factoring. As a non-bank financier, we can also switch a lot faster thanks to our function as investor and management advisor. We are already involved in various transition processes, which means that we can facilitate a hotel business much faster,” says Erwin Jager.
Due to its position as a hotel management advisory firm, Barrows is also able to enter an acquisition process much faster. We know the ins and outs of the industry and the hotel in question. If the position is weak and the entrepreneur does not qualify for an alternative financing source, Barrows is able to quickly switch the strategy and decide to buy the hotel to merge it with another hotel brand.
The company’s expansion is not coming out of the blue. Barrows has spent months preparing the company for a SPAC merger and is seeing tremendous growth in revenue and profitability as it expands its business. The next 24 months will be dominated by growth and innovation within the hotel industry. Barrows profiles itself not only as a hotel investor and advisory firm, but also invests enormously in hotel improvements such as PIP and HIP. This includes a healthy cash flow position that we are happy to facilitate within our “non-banking network” according to Barrows Chairman Erwin Jager.
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