Brand Selection & Contract Negotiations
Selecting the right brand (via management or franchise) is one of the most important and impactful decisions an owner makes. We help you through that process. Whether you want it to be “under-the-radar” or via a structured and disciplined RFP process, our team has undertaken this successfully hundreds of times. Once the brand is selected, our review of the draft agreements and recommendations for revisions come from a practical owner-centric viewpoint.
Management Company (Operator) Selection & Contract Negotiation
Selecting the right operator is another critically impactful decision an owner makes. HVS Asset Management has taken owners through the operator selection process hundreds of times and has a proprietary method to vet the companies for your specific hotel. Once the operator is selected, our review of the draft agreements and recommendations for revisions have an owner-centric viewpoint and results in an exceptionally strong contract that protects you and maximizes your return on the investment. Additionally, HVS maintains a database of thousands of management contracts that are searchable by company, property type, term, fees, incentive fees, duties and covenants, arbitration, employees, indemnification, expense reimbursements, working capital, FF&E reserves, termination, default, transfer and assignment, and many other criteria.
Acquisitions & Due Diligence
There are many steps in the acquisition of a hotel or resort and we have taken them all both for our own account and for our clients many times, so you will benefit from our experience and knowledge of the process.
HVS Asset Management can provide you with help all along the way toward making your acquisition decision including:
- Prepare an initial analysis of the opportunity by reviewing materials provided by the seller
- Conduct a proprietary Hotel Situation Analysis (HSA) for an overview of the Hotel’s market, operational performance, physical condition, management, and assessment of its future potential.
- Provide branding and operator analyses if you have the opportunity to re-brand or change the operator
- Estimate the change of ownership PIP or any necessary capital improvements
- Retain and coordinate inspectors, contractors, and other professionals needed for the critical physical inspections
- Develop pro-forma forecasts with zero-based staffing models and expense build-ups
- Review and analyze market demand studies and appraisals
- Review loan and partnership documents and assist with necessary analysis and negotiations
- Coordinate the closing process on your behalf
We will assist you by providing a hotel operator’s perspective to the development phase of your project. HVS Asset Management provides:
- Recommendations re: facilities planning, architecture, design, FF&E selections, concept, technology, lighting, landscaping, etc
- Identify and evaluate architects, designers, engineers, and other specialists and consultants
- Coordination of professionals
- Budget development and oversight
- Value engineering advisory
- Compliance, Banking, Reporting and Record-keeping
- Monitor execution of pre-opening marketing and staff recruitment/training
You will be working with experts who have gone through the hotel development and opening experience countless times. We have the capacity to oversee everything from concept development, site selection, design coordination and contractor selection to the stocking of shelves and obtaining the right equipment, décor, licenses, and staff as well as organizing opening events. We can help any investor through the experience of developing and opening any size hotel or resort.
We work with you to develop the concept and the architectural plans by focusing at first on the concept to maximize its appropriateness for the site and the market.
HVS Asset Management will work closely with your architects to make sure that industry standards are met, that blueprints reflect an efficient work flow for hotel operations, and that the overall design of the facility is aesthetically pleasing and operationally efficient. This will include such details, for example, as the location of back-of-the-house functions, kitchen size and design, laundry layout and location of electrical and plumbing as it relates to the operation of the hotel. It will be critical that our review and advice be sought in enough time to implement the changes that we recommend in order not to incur additional costs for the project.