The Client

Owner and operator of a number of prestigious marinas on the UK’s south coast.

What did Hotel Solutions Partnership achieve for the client?

We were able to highlight both the risks and rewards of each development/operating option and help our client’s stakeholders decide on the option that ties in most closely to our client’s long term business strategy.

Background

Hotel Solutions Partnership (‘HSP’) had previously advised the client on the feasibility of a hotel development at one of their marinas in Devon and the client now required advice on the costs and benefits of three development/operating options for the proposed hotel.

Client Need

The client approached Hotel Solutions Partnership to prepare a presentation for the client’s Board of Directors evaluating three potential options for contracting with an operating partner for the proposed marina hotel.

Scope of Work

HSP’s team began by contacting surveyors to acquire information on the likely ground rent achievable for the hotel/

Consultants conducted desk-based research and analysis of the costs, benefits and impact on the marketing and operation of the marina and the value of the property under the following 3 scenarios:

1. Client leases the hotel site to a develop/operator through a long term ground lease
2. Client signs a hotel management agreement (‘HMA’) with a branded hotel operator
3. Client develops its own brand and signs a HMA with a white-label management company

Our team prepared a high-level analysis of potential cash flows that would be generated by the different options. Our report included a strengths and weaknesses analysis and case studies on examples of each option in the UK market.

We presented our report to the client’s Board of Directors in person and addressed their questions on the various options.