Assessing market and financial potential for hospitality products such as hotels, resorts, convention centers and other recreational real estate involves undertaking the following tasks:
Many of the same steps outlined in a market study are incorporated into the due diligence process. Individual market studies are conducted on each property and a roll-up of the total portfolio is prepared. Often our due diligence includes an “as is” scenario as well as a “repositioned” scenario. Valuations may also be prepared to not only give a determination of current market value, but also a strategic outlook for the portfolio.
Often we work in tandem with an architectural firm in the planning and design process of a large, mixed-use master planned project. Our market research provides a baseline for maximum construction costs given the client’s investment criteria. We are also instrumental in assisting with recommending the major components within a large development to maximize synergies from a market context.
Many communities recognize the important role hospitality plays in an economy. Our role is to assist with identifying those core strengths of a community and recommending ways to fully utilize them. This is often accomplished through significant original research of community leaders, business owners, and current and potential visitors. Our network of development contacts can often assist a community with the implementation of a strategy document.
We provide full-narrative or special purpose appraisals signed by certified members of the Appraisal Institute. Our appraisals include a full market study to support the income approach. Our value based upon the income approach is then tested with the sales comparison and cost approach (when applicable).
We work with attorneys to assist with preparation of market research and then act as a fact and expert witness during the trial. We are often called to prepare rebuttals, critique the other side’s reports, and assist with identifying and concluding on key issues of the case. Our goal is to provide substantial market evidence to warrant a settlement and avoid trial.
Strategic issues can involve a variety of topics such as branding, attracting capital for growth, methods to growth, and the like. We also work with owners and operators to assist with a variety of functions that ultimately enhance bottom line performance. This is accomplished through increasing revenues by identifying new sources of income, or recommending changes in management or branding which ultimately leads to an increase in the top line. Conversely, we also make recommendations that reduce costs either through lower overhead or more effective practices. We have assisted clients at both the corporate and property level.
For more information about our services, please contact us.