Due Diligence – Hotel Portfolio
IHA was engaged to provide brand product improvement plan (PIP) guidance, management and underwriting support for the acquisition of a multi-property portfolio of hotels on behalf of a NY based opportunity fund. IHA managed the brand PIP process with each assigned hotel, provided assessment reports on each property, recommendations for PIP brand concessions and advised on costing associated with each PIP. Saved company over $2 million in PIP costs.
Caribbean Resort Evaluation and Hold/Sell Strategy & Value
Hired by owners who had requested a comprehensive review and report to their Board of Directors of their 250+ room resort, 27 holes of golf, residential and vacant land. Assignment evaluated and made recommendations for improved operational performance, positioning and branding in the market, management evaluation, recommendations for capital improvements to maintain and improve market share, suggestions for development on vacant land and full review of business valuation in today’s fractured market as well as after a 5 year hold with and without suggested improvements.
Sales and Hotel Audit – major market 250+ room hotel
Completed a comprehensive sales/hotel audit for a client with a branded hotel in a major market. Assignment focused on turning their sales effort around and generating new focus and direction for the management team in maximizing their current and future business generation agenda. Assignment included a full diagnostic evaluation of the marketing plan, STR reports, competitive set hotels, weekday vs. weekend pricing, revenue management process and procedure, web channel execution , web browser positioning, management’s brand tool box expertise evaluation and knowledge, service and customer complaint handling, sales effort review by segment, sales staff positioning and business generation activities, competitive set SWOT analysis and generation of new avenues of sales growth and strategy for the hotel. Evaluation of the role and involvement of the third party management company’s corporate direction, involvement and guidance was also reviewed during the audit. IHA completed a detailed report including multiple recommendations and action plans for new hotel sales generation, repositioning of the sales effort, hotel service culture and all other areas of the study/audit.
Hotel Acquisition Analysis and Due Diligence
Provided full analysis of past, present, future proforma, competitive set data, brand product improvement plan and capital needs pricing/assessment, engineering and mold report analysis, alternative brand and return on investment analysis on behalf of a private investment fund in pursuit of a 400+ room full service branded hotel.
Management Company Selection:
This trusted client’s new hotel, new 251 room property in a major market opened in September of 2008. IHA completed a rigorous RFP and selection process of the management entity for the pre-opening and ongoing operation of the hotel on behalf of this valued client.This thorough evaluation and process driven selection resulted in meeting the full needs of the client and specific needs of this unique hotel in a highly competitive marketplace.
Proposed St. Regis Hotel & Residences, Buenos Aires, Argentina
Engaged to spearhead the development of a 150 guest room, 25 residence St. Regis Hotel & Residences in the booming and upscale Puerto Madero district of Buenos Aires. This project had a total capitalization of over $60 million and was scheduled to break ground in fall/winter 2008. IHA led the process of selection, negotiation of contracts and coordination of all aspects associated with the architecture and design. IHA also recommended and reviewed multiple consultancies, provided input into the overall budget, FF&E budgets, procurement, operations projections and worked with Starwood LAD & corporate teams in coordination with hotel’s Argentina development team. IHA was responsible for marshaling and working with all aspects of coordination and detail execution for the development in the design development process for this luxury hotel project.
Luxury Resort Development Crete, Greece
Re-engaged by the developers of the proposed St. Regis Hotel & Residences in Buenos Aires to lead the development of their resort on the Greek island of Crete. During the final accumulation of land, evaluation of economics, selection of the architecture firm and defining the brand and branding strategies for the resort, the project was put on hold by the principals due to the collapse in the financial and real estate markets.
Ljubljana, Slovenia 5 Star Hotel Development and Market Analysis
Re-engaged by company that hired Integrity Hospitality to spearhead the luxury resort development in Crete to review, assess and evaluate a 5-star hotel development opportunity in Ljubljana, Slovenia. In addition to an on-site evaluation of the market, discussions with land owners and public officials involved with adjacent convention center, Integrity Hospitality Advisors evaluated the competitive set of hotels, new hotel product coming into the market, demand generators and provided development overview and base proforma and development assumptions to this valued client.
Site Selection – Select Service Hotel Portfolio:
Retained to work with strong balance sheet private development company with a history of big box retail and multi-family development in the selection of U.S. hotel sites, evaluation of markets and development of a series of select service hotels in key U.S. markets. This engagement included market identification, identification of optimal locations within each market and ultimately land acquisition assistance once sites were identified. In conjunction with acquisitions, IHA identifies proper brand selection, assists in negotiations for franchise contracts, provides assistance in the selection and negotiation of terms with third party management companies and provides architecture and design interface expertise with the selected brands. Following development of hotels at sites, it is contemplated that IHA will act in a hospitality advisory/asset manager capacity to this client through the ownership holding period.
Acquisition Opportunity:
IHA sourced and participated in negotiation of the acquisition of a new development opportunity for a 119 room select service development in the greater Washington DC market in which IHA was to be an equity participant. Worked through deal negotiations between principal and seller, assisted in due diligence and recasting of the modifications in architecture with the client and brand and advised on negotiations for the brand management contract.
Value Creation Advisory Service – Proposed New Brand:
Engaged by the largest private developer of hotels to provide advisory services in their exploration of an exclusive relationship with a major brand. This assignment involved evaluation of the development of a new brand that would be kick started by a joint venture between said developer and the brand company. IHA provided financial model and evaluation of the value creation assumptions to a public company in EPS, ongoing fees from such new brand combined with the value of transferring assets to such company to use as a platform to launch such growth. Project involved providing a model, assumptions for growth of the new brand relative to available markets, total revenues and fee generation based on expected growth opportunity provided by the developer’s contribution of hotels and the growth of the proposed brand extension.
Analysis of Hotel Acquisitions and New Development Opportunities:
Integrity Hospitality Advisors has been engaged by a private equity firm in the evaluation of several development and property acquisition opportunities in New York City, Miami Beach and Washington, DC markets. Provided advisory services which included analysis of current and future market conditions based on industry reports and site specific competitive set review, proforma review and meetings with sellers and associated entities. Spearheaded organization and implementation of preliminary due diligence on identification of efficient critical path for buy/no buy decisions based on work with the selected team of assigned consultants determining capital costs to make necessary improvements/changes to the properties being evaluated.
Expert Witness Testimony and Legal Support:
Engaged to provide expert witness hotel testimony and contract evaluation/situation analysis for a suit between a private developer and a luxury brand. This case involved non-performance of pre-opening services by the brand which resulted in the termination of the brand and management prior to hotel opening. Case was recently settled with significant savings to the private developer for whom Integrity Hospitality Advisors provided the analysis, advice and support.
Past Experience Examples:
District Director
26 hotels in a tri-state area overseeing the operations and brand integrity at each hotel with the management companies and individual hotel managers.
Development and Roll out of New Global Brands
aloft Hotels – Part of the team that conceived and branded this exciting, hip, innovative lifestyle hotel. Conceived and spearheaded the roll out of development and franchise launch of aloft, the first true select service hotel conceived by Starwood Hotels.
element Hotels – Part of the team that conceived this branded eco-friendly extended stay “green” brand. The first extended stay hotel in the Starwood portfolio. Conceived and launched the development and franchise roll out of this brand in North America.
Responsible for the initial North American roll out of these two upper upscale select service brands. Starwood Hotels & Resorts first select service hotel brands.
Acquisitions
- Marriott Ontario Airport, Ontario, CA
- Embassy Suites Phoenix, AZ
- Laguna Cliffs Marriott Resort & Spa (former Dana Point Resort)
- Hilton Denver West, CO
- Hilton Arlington, TX
- Waterford Hotel, OK
- Portfolio of 26 full service hotels – North America
Management Contracts
- Westin Bonaventure Hotel & Suites, Los Angeles, CA
- Bel Age Hotel, West Hollywood, CA
- Ilikai Resort, Honolulu, HI
- Mondrian Hotel, West Hollywood, CA
- Radisson Plaza San Jose, CA
- Marriott Laguna Cliffs Resort, Dana Point, CA
- Hilton Del Mar, CA
- Marriott Ontario Airport, CA
- Holiday Inn San Francisco Golden Gateway, CA
- Radisson San Francisco Airport, CA
- Marriott Houston North at Greenspoint, Houston, TX
Management
- Hyatt Regency Atlanta
- Hyatt Oakbrook
- Hyatt Regency Phoenix
- Hyatt Regency Houston
- Hyatt Wilshire
- Americana Great Gorge Resort & Conference Center
- Americana Hotel, Nashville
- Holiday Inn Elgin, IL
- Holiday Inn Minneapolis Downtown
- District Director – 26 Hotel Holiday Inn portfolio