John Q. Hammons Hotels & Resorts (JQH) yesterday announced that the family of companies, the Revocable Trust of John Q. Hammons, and their related affiliates have filed voluntary petitions to restructure under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court of the District of Kansas at Kansas City. JQH held a press conference this morning in Springfield to announce the filing. JQH is a leading private, independent owner and manager of hotels in the United States, including operating more than 1 million square feet of superb meeting space.
According to JQH’s CEO Jacquie Dowdy, the family of companies is financially sound and performing well. The financial restructuring will enable the companies and their advisors to better navigate the litigious environment that has encumbered the family of companies the past several years.
“JQH is known as a performance leader. We have a legacy of excellence that we are committed to maintain but increasingly, we have been restricted by legal roadblocks arising in the litigation,” Dowdy said. “JQH is financially stable. We want to ensure that the company Mr. Hammons built over 50 years and the financial and philanthropic commitments he made have the opportunity to continue to thrive. A financial restructuring associated with Chapter 11 will help to provide the necessary framework and safeguards to let us be there for our creditors, vendors, employees, guests and members of the community who benefit from the continued generosity of the legendary hotelier.”
JQH operates 35 hotels, representing approximately 8,500 guest rooms/suites in 16 states. The diverse hotel portfolio spans Marriott, Hilton, Embassy Suites by Hilton, Sheraton, IHG, Chateau on the Lake Resort / Spa & Convention Center, and Plaza Hotels Collection branded properties. The well-known company employs more than 4,000 associates, including the 2015 General Manager of the Year for the Embassy Suites by Hilton brand. Several of JQH’s properties are included in the TripAdvisor® Certificate of Excellence Hall of Fame for achieving TripAdvisor’s Certificate of Excellence for five consecutive years.
Dowdy added, “JQH is a process-oriented and budget-minded organization. We foresee this being a strategic and necessary move in the best interests of those to which we have financial responsibility. We do not feel the approach will adversely affect our guests, who will continue to enjoy exceptional stays at our award-winning hotels across the country.”
JQH’s Senior Vice president and General Counsel Gregg Groves is serving as in-house legal counsel in connection with the Chapter 11, while Stinson Leonard Street LLP is acting as outside counsel for the restructuring. For more information about the Chapter 11 case, including access to Court documents, please visit: www.bmcgroup.com/jqh.
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