Professional Services to the Hospitality Industry
The development of a new hotel is a complex process requiring, among other challenges, a considerable amount of due diligence. The result of this effort will assist a developer in determining the need for and potential level of success of a proposed development.
Pinkowski & Company has been conducting feasibility studies for new hotel projects on a nationwide basis for all type of facilities. As new hotel concepts have emerged, the company has assisted in evaluating the level of success for these new products.
National Hotel Brands/Chains offer numerous advantages for the development and operation of hotels. As new properties are added to a hotel chain the performance of existing hotels within that chain may be affected. An independent objective evaluation of this situation is necessary if both parties are to be successful in their efforts.
Pinkowski & Company conducts analyses of impact issues for various national hotel chains and brands. These studies assist in the evaluation of the impact on the business of an existing hotel by the addition to the market of a new property of the same chain or brand affiliation. A sample of these hotel companies include Bass Hotels & Resorts, Choice Hotels International, Best Western International, and Promus Hotel Corporation.
LITIGATION SUPPORT AND EXPERT TESTIMONY
From time to time disagreements occur among investors, operators, lenders, hotel companies, customers, etc. When these situations evolve, research, evaluation and opinions by professional consultants experienced in the hospitality industry assist in the resolution of conflicts.
Pinkowski & Company has provided assistance to a variety of clients with industry information, policies, practices, analyses and opinions to support conflict resolution.
CONFERENCE CENTER STUDIES
Pinkowski & Company has experience in the formulation of the feasibility of conference center development. Included in this activity are site selection and analyses, facilities planning, management selection and contract negotiation. The company has performed studies for both corporate and university conference centers.
PRODUCT IMPROVEMENT PLAN EVALUATION
Pinkowski & Company will assist an owner in evaluating product improvement plans required by a franchisor. This review will look at the scope of the plan and provide an owner with an alternative analysis to performing the plan or looking at repositioning the asset in the market place. [ top of page ]
SITE SELECTION AND CONTRACT NEGOTIATIONS
The first ingredient for a successful development project is the selection and purchase of an appropriate location. Pinkowski & Company can provide a structured format to assess the viability of a location for a project.
Pinkowski & Company also will work with the developer’s attorney during the acquisition process to ensure that all possible conditions and contingencies relative to that piece of property are identified and factored into the project’s plans.
One of the major challenges for a developer is to create a successful development within a highly regulative environment. Governmental regulations control and restrict, provide criteria for decision making, and often create a tremendous amount of additional work and analysis for the developer.
Pinkowski & Company will work with the developer and other project consultants in identifying any possible impediments relating to a site and developing a plan to respond to these regulations and determine their impact on the project.
The architectural and design plan for a project is typically a balance between aesthetics and cost, with cost being the determining factor on how competitive the project will be.
Pinkowski & Company will work with the developer and his architect to ensure that the concept plan for the project is generated based on the data developed by the feasibility study and potential requirements of franchise organizations, if applicable. Also, we will work to make sure the plan is designed to provide a project that will fit into its surroundings, appeal to its potential market place and conform to zoning and other site constraints.
One of the key decisions by a developer is the selection of the general contractor.
Pinkowski & Company will work with the developer in the selection of a qualified general contractor and the negotiation of a contract with the chosen contractor. Pinkowski & Company also will attend regularly scheduled construction meetings and participate in scheduled architectural review site visits with the architect and contractor’s representative. Pinkowski & Company also will confirm and coordinate those owner furnished items with the general contractor.
An area of concern for the developer is the proper selection of FF&E for a project and the coordination and delivery and storage so that there are no problems in the opening schedule of the property.
Pinkowski & Company will coordinate the FF&E specifications required by a franchisor, if applicable. We also will coordinate with the interior design professional and assist in the purchasing and delivery from the suppliers.
LOAN PACKAGE PREPARATION
Since many real estate developers require more money than the developer’s own resources, additional financing must be secured from other sources. These sources typically provide loans in the form of mortgage debt secured by real property.
Pinkowski & Company will work with the developer to generate a comprehensive loan package for presentation to various lenders. We also will participate in the presentation process with the developer.
If the developer is looking for a franchise for a particular project, Pinkowski & Company can assist in the selection process, completion of the franchise application and site meetings with a franchise representative as needed.
STRATEGIC PLANNING FOR HOTEL ASSETS
Every hotel should have its own business plan that outlines the owner’s investment criteria and expected returns, its hold period and a disposition strategy. Pinkowski & Company can provide a structured format to develop a business plan for a specific hotel asset, whether it’s a potential new acquisition, new development or an existing asset.
Pinkowski & Company will perform a market analysis to determine the asset’s position in its market and potential impacts to the lodging market that may effect the future performance of the hotel. This is the basis for the business plan that will provide an owner one of two choices – hold the asset or sell the asset. Also part of this process is an operations and management review, analysis of the property’s chain affiliation, physical plant review, and review of the management company’s performance if there is one involved with the hotel.
ACQUISITION DUE DILIGENCE
Pinkowski & Company can provide potential hotel investors with pre-purchase due diligence. Once a target property is identified, P&C will assist the developer through the due diligence process and analyze the financial potential of the property.
MANAGEMENT COMPANY AND FRANCHISE EVALUATION
Pinkowski & Company can support the developer through the selection process for the appropriate franchise affiliation as well as a management company. We also will assist in the contract negotiations to assure that the owner receives the most favorable terms.
Pinkowski & Company will assist clients in identifying the appropriate repositioning of their facility in order to maximize its potential operating and financial performance, thus enhancing the long term value of the asset. Repositioning the property is accomplished through many different channels, including restructuring room rates, changing the physical product through renovation and refurbishing and changing the marketing program at the property. A market study is prepared to determine the appropriate course of action to be taken for the property and is the basis for projections of operating performance and financial results which are used to test and verify the repositioning recommendations.