For Prospective hotel and resort owners
Before you buy or build a hotel, know what it will really earn.
A first hotel is usually bought with the heart and financed with the head. We make sure the head has the numbers before the heart signs anything.
What usually goes wrong
Four things we see most often.
- 01
The price is set off a broker’s multiple, not the cash the hotel can actually pay.
- 02
The resort is bought at the top of its cycle, when three-year growth is already below five-year growth.
- 03
An existing management contract stops the repositioning the owner bought it for.
- 04
Pre-opening, working capital and the first two years of losses are left out of the budget.
What we do for you
Where we come in.
Valuation
Cap rate, DCF, multiples, replacement cost and comparable sales, reconciled to one range you can negotiate from.
Due diligence
The accounts, the agreement, the market and the building, read from the owner’s side.
Concept and feasibility
For a new build: what to build, how big, at what cost and for whom.
Choosing who runs it
Brand, management company, franchise or your own team, and what each costs you.
Start with these