Residhotel

Hi

Not that I have noticed for Mulhouse, but Residhotel failed to pay on a number of other leaseback locations (see post by Steve on specific leaseback developments)

Steve

Dear Steve,

We had news yesterday from MD Residhotel after conf. call: on 95 developments, 8 are generating problems (ZRR) with acceptable occupancy but low price so the 8 problematic resorts are putting the overall cashflow in a difficult position. RH is trying to lower the rent for the 8 developments. The MD said that the rents on the remaining developments should be paid by end of March. Each owner should receive a letter next week explaining the situation.

RH has a problem of communication and if you wish more and fresh news contact us on info@clvproperties.com

BLM

Is this a ray of light or just being pawned off?

Firstly, as far as I know they have 55 developments, not 95 - so I am confused.

Secondly, How will we know that they are telling the truth in that only 8 are problematic just now. I would accept that if you know the names of which 8 it mightn't be clever to list them. But do you know the 8 ? Because otherwise I would suspect it could be a clever game of divide and conquer with each of us happening to be one of the unlucky eight , and since we dont have a group with a rep from each residence they manage we cant of course reconcile their claims.

I do hope that we are getting a true picture, however having been unable to get the courtesy of a response from them to the delays in payment , I am very sceptical about the whole thing and am leaning towards legal action.

Syd

The cashflow issue should be sorted out within few
months and owners should be paid end of March for the last quarter. So far I
trust Mr Mulko as I well know how this business works. Yes we know most of the developments generating problems and owners received a proposal with a rent decrease. You are right we havent a global view here but when you have 1 management company going bankrupt per month , you can imagine that it is serious and that they are really suffering.

Here the problem is not simple as RH manages more than
90 resorts. We have experience in replacing a management company (Meteor,
Monnier…) as we can find new management company. But here to replace RH would
be nearly impossible as it is the number 3 in France.

My recommendation for the moment is to maintain the
contact with the MD, accept lower income for owners in the 8 resort
and negotiate the decrease and a variable part after audited the figures per development, wait until end of March before to start any
action. In the meantime create associations of owners to be more powerful.

BLM

I have a new leaseback in Galerie Tatry, Bordeaux with Residhotel. Just wondering if anyone else has bought in to this scheme and should I be expecting problems with management company

Larah

I know someone who has received a letter from RH and I am due to review because it seems that they are offering a deferred payment which could be a lot better than a big reduction of rent.

Have you received any correspondence from them too?

Ed

I have not received any correspondence from RH about my leaseback in Galerie Tatry but if I do I will let you.

Hi,

I have been given this forum address to all our clients
using Residhotel as a method of meeting up and finding a solution.
Ideally you should form an owners association with some legal
representation. Unfortunately, to those of you that asked me to send
you a list of owners that boght through French Property Ireland, this
is impossible due to our privacy policy but I have sent on this forum
address to clients so that you can make contact with each other this
way.

Deirdre
www.frenchpropertyaftersales.com