Opportunistic buyers are assisting and partnering with existing owners of property and debt. The attached article describes one well-known situation of how great properties are being restructured in today’s marketplace. The problem for many owners is too much debt. These opportunistic funds are coming in, paying down the debt and taking an interest, many times a majority and controlling interest, while the current owner takes a reversionary or back-end interest on these transactions. Many participants believe that RevPAR will increase in the next three years and that cash flows will increase greatly from where they are today. This will provide good initial cash flow for new investors.
