Recovering Financial Success
Regency began as a management company tasked with transforming struggling and bank-owned properties into ownership opportunities by eliminating inefficiencies and finding the true potential of every property.
Bankruptcy is the final symptom of a more fundamental problem: inefficiencies—inefficiencies in management, day-to-day staff operations, and, of course, in budget decisions. When a property is underperforming with its resources, it will eventually run out of steam. At Regency, we prevent this from happening.
Of course, inefficiencies might not be the only problem leading a property to receivership. Other elements could play a detrimental role—like poor team dynamics or advertising, for example.
However, over the years Regency has discovered that almost any property can find a stable financial footing by eliminating inefficiencies and replacing them with smart, realistic strategies.
One South Dakota property, built in the middle of a corn field, found itself unable to pay debt service. After six months of careful work, we covered debt service and established a plan for future growth that resulted in partner ownership and profits for nearly 50 years.
At the bank's request, we began operating a struggling hotel in North Dakota. After weeding out several key inefficiencies, it began to thrive and continues to operate today with a 40% increase in sales and nearly a 100% decrease in loss within the first year.
One Nebraska property was losing close to $1.5M annually. After 12 months in receivership with Regency, that number fell to only $300,000 with the expectation of achieving cash neutrality by the end of 2021.
In just over two years, Regency took a failing golf club and condo rental program from a negative $300K cash flow to a positive cash flow by introducing new systems for cost controls on product and labor. We drove sales through golf shows, condo rentals, and even food and beverage. The resort saw a positive cash flow of nearly $100K at the close of 2020.
A property in Minnesota was underwater by more than $1M annually. Regency was able to turn things around and get this property to cash neutral in year one, and showing a profit after debt in year two.
These numbers speak for themselves. Our objective is always stability and profitability for every property. We get there by replacing inefficiencies with strategies that make sense for each situation, including each property staff. In the end, we make sure everyone wins.
Interested in working together?
Contact us with questions or to learn more about receivership with Regency.Contact