Hotel consultants provide specialist advisory support to hotel developers, investors and owners throughout the planning, development and operational lifecycle of a hotel project. In most markets, hotel consultants operate in various forms, including specialised international hospitality advisory firms, global real estate consultancies with dedicated hotel teams, local hotel consulting practices, and independent professionals with extensive experience and contacts within the regional hotel sector.
The role of hotel consultants is typically to fill the gap in hospitality expertise within the developer’s organisation, bring an impartial perspective to project evaluation, and support informed decision-making throughout the development process.
What is a Hotel Consultant?
A hotel consultant is a specialist advisor who supports hotel developers, investors and owners during the planning, development and operational phases of a hotel project. Hotel consultants provide independent expertise in areas such as market feasibility, business planning, operator selection and development strategy.
Hotel consultants typically work alongside developers, architects, financial institutions and hotel operators to ensure that a project is commercially viable and operationally practical. Their role is to bring hospitality expertise into the project team, helping to reduce risk and improve decision-making throughout the development process.
What Do Hotel Consultants Do?
A hotel consultant should fill the hotel skills gap within the developer’s organisation, bring an impartial approach to project evaluation, accelerate planning, and bring confidence to the decision-making 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, medium and long-term financial projections, and the potential return on investment. Feasibility can vary in detail and, therefore, in expense, depending on the investor’s and project’s needs. A feasibility study and business plan by a reputable hotel consultant is often a prerequisite for financial institutions.
Operator Selection
Identification and introduction to relevant hotel operators or hotel brands to manage, franchise or lease the property. Setting criteria, coordinating, and streamlining the head of terms and advice for shortlisting and selecting an appropriate brand. Providing commercial guidance during the contract negotiation process and explaining 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 provide a general overview, appraisal, and assistance with coordinating 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 should not be confused with a technical project manager position; it is instead intended to provide specific hotel expertise, aiding efficiency and the practical, 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 on budgets and capital expenditure plans, corporate structure, owner representation with the hotel operator, benchmarking, and performance reviews.
Valuation and Exit
The hotel consultant may be qualified to provide an assessment of value for the project, property, or contracts for financing and asset sales, or to support due diligence, risk analysis, balance sheet reporting, or company value appraisal, funding 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.
Further Resources
See also:
HDG – Do I need a hotel consultant?
HDG – When should I engage a hotel consultant?
HDG – How to choose a hotel consultant?
HDG – Links to hotel consultants
eCornell – Feasibility & Market Analysis