The Client

An established operating golf club within a 45 minute drive of Central London. 

What did Hotel Solutions Partnership achieve for the client?

HSP refreshed the market study and changed the initially proposed positioning of the hotel to maximise opportunities in the market. We secured an operator at the higher brand level than our client had initially planned.  We negotiated a Heads of Terms agreement for a management contract that achieved a substantially improved position for our client in respect of both financial and operational control.

Background

The client had an existing Feasibility Study in place supporting a three-star hotel on site.

Client Need

Hotel Solutions Partnership (HSP) were approached to conduct an Operator Search & Selection in order for the client to engage a capable operator that could establish and maximise the profitability of both the new hotel and the existing members clubhouse.

Scope of Work

Phase 1: Prepare an Operator Request for Proposal (ORP)

HSP Consultants conducted a site visit and met with client’s team.

HSP created an ORP by utilising the existing feasibility study report and updating the market study.  The ORP included :

• Nature and Profile of target market segments for the proposed hotel
• Factors affecting demand and growth of the relevant markets
• Nearby competitors, current room supply and hotels in development
• Nature of competition (brands, standard, no of rooms and facilities)
• Competition set average occupancies, average room rates RevPAR
• Updated market positioning relative to the competition
• SWOT analysis

Following submission and discussion of the ORP with the client, HSP agreed a target list of operators.

Phase 2: Market the Opportunity to Target Operators

HSP oversaw the competitive bidding process to maximise the benefit for the client including:

• Distribution of the ORP to a group of hand-picked operators that were identified as having the brand, marketing and operating capability to compete successfully
• Arrange and attend site visits for operators and coordinate tours of the property with the client’s appointed representatives
• Preparation of a timetable noting all critical dates for submission of proposals, presentations and owner decision timeframes

Phase 3: Analyse Operator Proposals and Prepare Recommendation Report

• Receive proposals with the operator’s financial offer, capacity, track record, management terms plus any requirements
• Evaluate operator proposals based on the pre-agreed weighted criteria such as branding suitability, reputation for service delivery, revenue generation ability, cost implications and the major commercial terms
• Made recommendations on the optimum deal for the client given their long-term vision for the property
• Negotiate final head of terms with preferred operator to achieve the most advantageous commercial arrangements