In these difficult times hotel performance has been under more pressure than ever before, as hotels struggle to comply with lender covenants, commitments to landlords, meeting brand standards, and investor expectations.
Hotel Solutions Partnership offers a proven and efficient review process to assess all facets of the hotel and make informed decisions on options for the property going forward.
And the process is equally suitable for the needs of owners, financiers or operators.
Typically, questions asked at this time are:
- What can be done to control existing bank/lease commitments?
- Will the property be able to recover?
- What is required to boost revenues and restore profitability?
- What is a reasonable timeframe for the hotel’s recovery?
- Does the existing management team have the required skill set and desire to execute the strategy?
Our work covers three areas – Finance, Loan hold or dispose analysis and Operations.
I. FINANCE
Hotels generate a lot of data, but what you really need is information. Understanding “where you are at” is an important first step in determining “where you can get to”, so it is important you have clear and accurate information.
Where you are at
As part of this process we analyse and assess:
- Profit and Loss reviews
- Capital expenditure requirements
- Cash flow management and reviews
- Ongoing review, reporting and Asset Management
Where you can get to
This assessment focusses on:
- Break-even analysis
- Cost reduction reviews
- Renegotiation of contracts (hotel management agreements, franchise, lease & long term commitments)
- Negotiations with brands
- Insourcing versus outsourcing analysis
II. OPERATIONS
It is also important to assess existing processes and ensure systems are adapting to current needs. This process typically involves reviews of:
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- Operator responsiveness
- Revenue generation strategies
- Steps for turn around and repositioning
- Support and transition between brands
- Ongoing review, reporting and Asset management
III. LOAN HOLD OR DISPOSE ASSET
- If you are a debt provider you may want comfort that your borrower has a clear strategy to return to more profitable business operations. In some cases this may involve providing additional debt to enable the hotel to execute its strategy.
- Conversely, as an owner you will need to ensure you are keeping your financiers in the loop, with current operations, your strategy and how you plan to execute this.
- On either side and under either decision we can assist with the process going forward.
- We can assist with developing; or provide an independent assessment of, both strategy and the detailed plans to execute said strategy
IV. WHO WOULD USE STAKEHOLDER SERVICES?
- Owners looking to address how their hotel is set up for the way forward
- Managers wanting an independent view
- Banks assessing loan portfolios
- Landlords evaluating tenants
- Owners looking for an independent party to assist in or lead negotiations with other stakeholders
Project Timeframe
3 – 6 weeks
Costs
High level reviews start from £7,500
