Frequently Asked Questions

Why is Aimbridge pursuing a balance sheet restructuring? 

• We have been executing on a comprehensive strategy to enhance our differentiated service offerings, invest in top talent, and make strategic and operational improvements to drive hotel performance – and we have already made substantial progress, with hotel metrics trending upwards.
• However, our business continues to be burdened by significant legacy debt.
• This agreement provides an optimal financial solution to convert a significant amount of our debt into equity, improve our capital structure and accelerate our long-term strategy and business objectives.
• At the end of this process, Aimbridge would have one of the healthiest balance sheets in the industry, and will be poised to continue building our market-leading position and operational capabilities.

How will this impact the Company’s day-to-day operations? 

• This is a balance sheet restructuring only – our day-to-day operations will continue as usual during this process, and our focus remains on delivering operational excellence, best-in-class guest experiences, and innovative solutions to our hotel owners.
• Importantly, there is no impact to our employees, hotel owners, brand partners, suppliers, or vendor relationships. We will continue to provide services in the normal course, associates will continue to receive salaries and benefits as usual, and all vendors and suppliers will continue to be paid in the ordinary course of business.
• In addition, our current executive leadership team remains in place, with Steve Joyce continuing to serve as the Chairman of the Board, Craig Smith as CEO and Eric Jacobs as Chief Global Growth Officer, and will work closely with an independent board with significant hospitality and leadership experience.

Is this going to result in any business disruption that will affect Aimbridge’s ability to manage and operate my property/properties?

• No. This is a balance sheet restructuring only – our day-to-day operations will continue as usual during this process. We have a small team focused on the restructuring process alongside our financial and legal advisors; all other associates remain dedicated to driving hotel performance and delivering excellent service to meet your needs.
• This means that there is no change to our relationship with you or to our longstanding commitment to operating our hotels to the highest standards.

Will the vendors or service providers who service our property/properties continue to be paid?

• Yes. Under the agreement, all trade suppliers and vendors will continue to be paid in the ordinary course of business.

How does this impact vendors and service providers? 

• This process will not impact you or our partnership. We will continue to operate our business as usual, and our relationship with you remains essential.
• Under the agreement, all trade suppliers and vendors will continue to be paid in the ordinary course of business.

Does Aimbridge have the liquidity to meet its obligations to vendors and service providers? 

• Yes. This process is specifically designed to address our capital structure – it is not a reflection of our operational liquidity or our ability to meet our ongoing commitments to our associates, hotel owners, brand partners, and vendors.
• We will have ample liquidity to continue paying you as usual, without interruption, during this process.

What does this mean for me? Will my role and responsibilities remain the same?

• As we work through this process – which we expect to be quick and efficient – the most important thing to know is that nothing is expected to change for you, and we ask that you remain focused on your day-to-day responsibilities.
• Our day-to-day operations will continue as usual and there will be no impact to our associates, hotel owners, brand partners, suppliers, or vendors.

Will there be any changes to my compensation and/or benefits as a result of this process? Will I be paid as usual?

• You can expect to continue to be paid as usual. There will be no impact to compensation or benefit plans for our associates, all of which will continue in the normal course without interruption.