PHASE 1 – To conduct an Operator Selection process made up of the following steps:
I. PREPARE AN OPERATOR REQUEST FOR PROPOSAL (ORP)
- This describes the hotel’s market environment, positioning, concept, financial projections and includes information on the existing property or proposed development.
II. MARKET THE OPPORTUNITY TO TARGET OPERATORS
- Distribute the ORP to a group of hand-picked, pre-agreed operators with the brand, marketing and operating capability to compete successfully in the identified markets.
III. ARRANGE AND ATTEND SITE VISITS
- Coordinate tours of the properties with the Client’s appointed representative(s). Coordinate tours of the properties with the Client’s appointed representative(s).
- Preparation of a timetable noting all critical dates for submission of proposals, presentations and owner decision timeframes.
IV. ANALYSE OPERATOR PROPOSALS AND PREPARE RECOMMENDATION REPORT
- Evaluate operator proposals based on a number of criteria such as branding, suitability, reputation for delivery, cost implications and the major commercial terms.
- Submit report recommending the operator(s) that is most suited manage the hotel or resort.
PHASE 2 – To Review and Negotiate the terms of the operator’s appointment
- The Client receives a Letter of Intent and Heads of Terms from the preferred operator(s)
- Major heads of terms for the Management Agreement(s) (MA) and Technical Services Agreement(s) (TSA) are negotiated by HSP and the Client’s appointed legal counsel until agreements are signed.
Circa one month