Development Advisory
We provide a range of development advisory services. Read more about them below:
Confirmation of Viability
On completion of the market analysis and the feasibility study, we will spend time with you to discuss our report, to ensure that you fully understand our conclusions and the assumptions on which they are based.
If necessary, we will undertake additional financial modelling according to your requirements. This would include different financing scenarios, as described below.
Our study will be prepared assuming development of an agreed mix of facilities and services. Following discussion of our conclusions, we can carry out further financial modelling, and look at different physical scenarios, including phasing of the development, as considered appropriate. We will work closely with the project architect, to get the design and the detailed specification right. This will be an iterative process, taking account of the research as well as your own requirements, and should ideally include the selected hotel operator.
Financing structure and Funding
The nature of hotel project cash flows is such that the financial
structure needs careful analysis to avoid, for example, over-burdening the
business with debt, and to ensure correlation with the owners’ and investors’
return requirements. Part of the additional modelling is deriving a financial
structure for the project which is both supportable and also achievable.
We provide valuation advice throughout the development process and after
completion. Our property department is staffed by RICS (UK) qualified
Registered Valuers who provide formal valuation advice that is compliant with
the requirements of the vast majority of lending institutions. Formal
valuations are often required by lenders as part of their loan monitoring
process, to ensure that loan-to-value covenants are adhered to
There are numbers of possible ways to
provide management to a hotel, ranging from appointing a management company to
the owner running it personally.
Where an owner wishes to outsource the operation of the hotel to a professional
management company, in the first instance we compile a list of operators that
we think would be appropriate for your project, and who would be interested in
the opportunity.
For those with whom it is considered appropriate to pursue discussions, we prepare
a brief detailing each brand’s system size, main characteristics of their
brand, and their strengths and any weaknesses relative to your project.
We analyse the responses to an RFP, present that analysis to you and discuss it
with you, and assist you to select an operator with whom negotiations can
commence. We lead those negotiations, in order to obtain the best commercial
deal, and fair terms of contract.
We provide full development advisory services,
assisting you and your other consultants you’re your negotiations with
contractors, design specialists, suppliers and others, reporting on programme
and quality, providing a coordination point for all involved in the project,
and overseeing the design and the finishes.
Procurement & Installation
Our associates have very strong
relationships with global manufacturers and suppliers. Based on these, we can
eliminate the cost of the middle-man, managing the entire process of FF&E
and OSE procurement, ensuring that brand standards are met. We also provide an
installation service, receiving and installing all FF&E, testing equipment,
training staff in equipment operations, and preparing asset registers.
Once the hotel is open, we can provide asset management services, essentially “managing the manager”, ensuring contract compliance, and that the Owner’s requirements are met, in terms of financial returns. This is a pro-active role, both monitoring and assisting the management team on ground to meet objectives.
