The Client

An existing yacht and boat marina in South Devon, UK

What did Hotel Solutions Partnership achieve for the client?

HSP’s preliminary conclusions and report were delivered to, and discussed with the client before submission of a final format report. HSP’s research, analysis and conclusions informed the client about relevant competitive and comparable hotels and hotel markets, and confirmed potential trading performance, and overall viability for the proposed upscale boutique hotel.

The HSP team also detailed recommended next steps for this project:

• Operator search and selection.
• Negotiation of key contract terms for a hotel management company or operating lease.
• Ongoing Hotel Asset Management and/ or ‘Owner’s Representative’ support, during both development and operating phases.

Consultants

Ian Oram, Simon Hudspeth, David White

Background

Following acquisition, the new owner of an existing yacht and boat marina in South Devon wished to plan and execute significant redevelopment, including the provision of residential property, leisure and retail facilities to complement expanded and upgraded marina facilities. A central component of the planned marina redevelopment was an envisaged upscale boutique hotel. Hotel Solutions Partnership (HSP) was engaged to conduct a hotel feasibility study, assuming hotel facilities broadly in line with architectural plans produced for the Client, which were submitted to the planning authorities.

As a separate workstream, HSP also advised the Client on development options for the residential components of their masterplan.

Scope of Work

HSP conducted the following scope of work, as agreed with the client:

• Desk research into hotel supply and demand of relevance, including the purchase and review of: hotel supply & pipeline data; and hotel profit & loss performance benchmarking data.
• Kick-off meeting and client briefing on site.
• Field research, to incorporate hotel demand profiling, and analysis of seasonality, geographic origin, and purpose of visit. HSP spent 4 days in the local area/ Devon-Cornwall, and visited several comparable upscale boutique hotels :
• HSP’s independent estimates of Hotel Occupancy & Average Rate performance for The Proposed Hotel, taking into account likely seasonality, potential demand sources/ market segmentation, as well as historical, current and potential future trends in hotel demand and rooms revenue performance.
• HSP’s independent estimate of ‘Stabilised Year’ Profit & Loss performance for the Proposed Hotel , assuming facilities as currently planned by the client. This stabilised performance estimate was based upon HSP’s experience and market knowledge (including information gathered during desk and field research), and was prepared with reference for specifically purchased benchmarking data.
• SWOT analysis for the Proposed Hotel, as envisaged/ planned by the client.
• HSP’s independent 10-year Profit & Loss Forecast for the Proposed Hotel.
• Simple, pre-tax ROI analysis comparing HSP’s P&L Forecast (Net Income after Management Fees) with the client’s Development Cost Estimate.
• Summary of Preliminary Conclusions.
• Conference Call with the client team to discuss HSP’s Summary of Preliminary Conclusions.
• Concise Draft Report, discussion with client, and Final Hotel Feasibility Study Report.