Financial restructuring helps stabilize a hotel chain following accumulated losses of USD 128 million
- 2 days ago
- 2 min read
An international hotel chain with a presence in Chile, operating more than 1,400 rooms, faced a critical situation following the impact of a social crisis and the pandemic. The decline in business tourism and mobility restrictions directly affected its revenue, straining its financial structure to the point of defaulting on its creditors.
Between late 2019 and 2021, the company accumulated losses of nearly USD 128 million in sales and a decline of approximately USD 50 million in its operating income. Despite previous efforts—including capital injections—the debt structure, totaling nearly USD 230 million, required a comprehensive solution to ensure business continuity.
Approach
At SummaPartners, we worked closely with our client to design and execute a restructuring process that combined financial sustainability with operational continuity.
The work was structured across three complementary areas:
Negotiations with creditors: We guided the process to redefine the debt structure, aligning payment terms with the company’s actual cash-generating capacity.
Asset divestiture: We supported the sale of a key asset to generate liquidity and reduce financial pressure.
Financial modeling: We developed projections under various scenarios, enabling the evaluation of alternatives and providing a basis for decisions during negotiations.
This approach allowed us to organize the financial information, align the stakeholders, and move forward with a clear roadmap in a context of high uncertainty.
Impact
The process helped stabilize the company’s financial situation and ensure business continuity.
Key results include:
USD 72 million in liquidity obtained through the divestiture of a strategic asset.
Debt restructuring totaling nearly USD 230 million, with terms adjusted to reflect actual cash flow generation capacity.
Establishment of a sustainable financial structure, with agreed-upon terms that included an interest rate of around 6%.
Operational continuity of a platform with more than 1,400 rooms, safeguarding the value of assets and international brands.
Key Takeaways
Beyond the numbers, the project enabled the company to move from a situation of default to a manageable scenario, with a structure aligned with the reality of the business.
Overall, the restructuring brought order to the financial situation and transformed it into a foundation for sustaining operations and restoring performance over time.
At SummaPartners, we help our clients understand and restructure their businesses, from financial diagnosis to the execution of complex processes with creditors.
If your company is facing financial strain or needs to redefine its debt structure, let’s talk.