You might have 7 great years in a row, followed by some event that makes the next 2-3 years difficult.

Depending on where you are as an owner, and if it’s an option, you may consider restructuring your debt.

Remember, if the cash comes too easy there is going to be pain later in the cycle.

When the cycle is strong, and owners are presented with an opportunity to get their equity off the table, a debt restructuring is an approach to take.

You are “refinancing” your hotel that is killing it. And you can get more debt and pay back your investors.

There is also the negative situation where you cannot pay your debt due to a sudden drop in business.

Typically, during the downturns, you turn to your lender for help. One way is to find a better interest rate, to take the burden off the asset.