In most geographical market’s hotel consultants exist in various forms including specialised international hotel consultants, global real estate consultants with embedded hotel teams, a local hotel consulting firms and private individuals with extensive experience and contacts within the regional hotel market.
What Can a Hotel Consultant Do for Me?
A hotel consultant should fill the hotel skills gap missing in the developer’s organisation, bring an impartial approach to project evaluation, accelerate planning and bring confidence to the decision process. Below are listed the critical support functions typically offered by hotel consultants:
- Feasibility: Establish in the opinion of the hotel consultant with measured reasoning the economic viability and relevance of a site, property, general location or market for the potential development of a hotel. Deliver an assessment for the hotel development, financing and operation identifying viable accommodations sectors, facility configurations and support infrastructure options and requirements.
- Business Planning: Provide the basis for a business plan including estimated costs for development and medium and long-term financial projections and the potential return on investment. The feasibility can vary in detail, and therefore expense, depending on the needs of the investor and project, a feasibility study and business plan by a reputable hotel consultant is often a prerequisite of financial institutions.
- Operator Selection: Identification and introduction to relevant hotel operators or hotel brands to manage, franchise or lease the property. Setting criteria, coordination and streamlining of the head of terms and advice in shortlisting and selecting an appropriate brand. Providing commercial guidance during the contract negotiation process, and the explanation of the practical implications of contract terms. Coordination together with the developer’s internal or an appointed external legal counsel.
- Project Development: The hotel consultant can give a general overview, appraisal and assistance in coordination of the project team during the development stages of the project from a hospitality perspective including technical, architectural & design and investment. Such a role is usually limited and not to be confused with a technical project manager position; it is instead to provide specific hotel expertise aiding in efficiency and the practical and efficient future operation of the property.
- Operational Services: The hotel consultant can be retained for a range of additional services after the opening such as asset management including strategic advice in areas such as budgets and capital expenditure plans, corporate structure, owner representation in front of the hotel operator, benchmarking and performance reviews.
- Valuation and Exit: The hotel consultant may be qualified to provide an assessment value for the project, property or contracts for financing and asset sales or support due diligence, risk analysis, balance sheet reporting or company value appraisal, f
unding and investment advice such as identifying appropriate timing for divestment, refinancing and refurbishment. The consultant may provide hotel specific dispute resolution advice including arbitration, mediation and litigation support.
See also:
When should I engage a hotel consultant?