Alternative Real Estate
Hotel, Resort and Commercial Property

Choosing Your Development Options: Limited Service or Full Service Hotel?

In recent years, the global hospitality market has seen a plethora of innovative hotel concepts as a larger number and more sophisticated products become available. Already well-established in America and Europe, over the past few years, Selected Service and Limited Service Hotels have also emerged in Asian countries as very attractive investment opportunities for developers and operators.

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Following the Right Path: The Process of a Market Study

The market study is used to identify the market that exists for a particular product at a given time. The study seeks to analyse the feasibility of a proposed development concept and identify its related risks and opportunities.

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Choosing Your Development Options: Serviced Apartment or Hotel?

With the steady growth of business travel and changing accommodation trends, serviced apartments are becoming an appealing alternative investment to other forms of lodging property. There are substantial differences from typical hotels but there are also several similarities. We have illustrated in this paper what developers should consider when making decisions about development of hotel and serviced apartments.

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Our support for this step

An in depth analysis of the hotel and resort market in a specific destination including economic environment, market trends, development performance and market outlook (possible risks and opportunities). The market study will help with investment decisions and formulating the next steps in the planning process.

A Cash Flow simulation to identify risks and assess possible outcomes of various scenarios, taking into account various factors (site characteristics, market needs, developer’s internal budget and plan, and more).

Defines the master plan direction in terms of concept and design. The review will ensure that the preliminary master plan design concepts are carefully considered while all project components are seamlessly integrated and the phasing does not interfere with the project operation and sale.

How to Project Future Occupancy

The lodging industry can be highly volatile and extremely sensitive to fluctuations in demand and supply. Therefore, projecting future supply, future demand and occupancy is an indispensable part of hotel development planning process.

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Are You Lending Money to Condotel Project? This is What You Should be Aware of

Every condotel project is able to generate certain revenues and profit through the operation and so the guaranteed return is supposed to be covered by the operation. However, in case of high guaranteed return and weak market conditions.

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Defining Your Development: Holiday Residences or Condotel?

Condotels and Holiday Residences are often identified as similar second home types as they both allow developers to reduce the equity investment and loan by raising additional financing through the construction period from the pre-sale process. However, the majority of developers fail to understand that there is a large variety of products within the categories with different operational and design features.

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Our support for this step

A customised Feasibility Study based on the Client’s specific needs to determine the financial viability of the selected development option as well as to identify the highest and best use of the land. The Feasibility Study includes but is not limited to Market Study, Site Analysis and Cash Flow Analysis.

Closely examines the Cash Flow dynamics of the proposed development option to answer various questions regarding its financial aspects (e.g. Is the project feasible? How strong is the Cash Flow generated and does it have the ability to cover the loan? What is the expected return on investment?).

Ensures that the concept plan is optimised not just in terms of aesthetics, but is also functional, maximises operational efficiency and is aligned with future market trends. Detailed recommendations are given on a large range of project parameters such as design, facilities, pricing, costing, phasing and operational related indicators.

Assisting the developer to finalise the development concept which is both viable and deliverable and articulate it in the form of a structured Design Brief. The Design Brief provides clear and detailed guidance for all parties involved in later stages expediting the development process and aligns all parties to move forward in the same direction.

Selection of the Management Company: Process and Path

We are often engaged in the first part of hotel planning where the developer, hotel consultant, hotel operator, designer and legal advisor need to be addressed and coordinated following the correct timing of the engagement. What are the typical questions that the developer would face?

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An Incorrect Operator Tendering Process: The Mistakes to Avoid

Very often we have been involved in conversations with clients asking for direction about the required processes for the appointment of management companies. This is a very blurred path for less experienced developers regarding timing or involvement of consultants. Often management companies would suggest getting themselves involved in very early stages. However, this could lead […]

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Our support for this step

The initial stage involves a preliminary review of the subject investment and development targets as well as the preparation of a formal Information Memorandum and shortlist of proposed operators. Subsequent stages involve advising on the main commercial terms in the Memorandum of Understanding (MOU) which is then used as the basis for hotel contracts in later stages such as the Technical Services Agreement (TSA) and Hotel Management Agreement (HMA).

Coordination of all relevant consultants (designers, architects, project managers and operators) to ensure that the planning of the project moves forward, on behalf of the developer during the initial planning stage before the Project Manager takes over the coordination.  Services include rendering assistance with the planning timeline, arranging stakeholder meetings, attending and monitoring workshops and supporting the developer in translation when required.

Preparation and support in the consultant tendering process (designer, architect, leasing agent and property manager). The process involves the preparation of a project information report, introducing or providing a list of potential candidates and collection and review of proposals.

8 Tips for Your Next Valuation Exercise

Are you about to appoint an independent valuation company for appraising your operating asset? Here are some tips to make sure nothing get lost (including values).

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Preparation to Sell Your Asset – Getting Fit for Your Exit

The BOD has finally decided to consider the sale of the asset.  What can you do to make sure there will be offers on the table?

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Our support for this step

A letter of opinion providing the developer an independent assessment of value that can be used as a foundation from which to consider an acquisition, disposal or other financial decision by the developer, investor and other relevant parties.

Advice on the financing, acquisition and disposal of real estate assets. Services include rendering assistance with acquiring real estate assets, providing advice on market conditions and pricing as well as providing guidance throughout the process of negotiation, due diligence and deal completion.

Are You Building a Condotel? Should Guaranteed Returns be Part of the Marketing Strategy?

Condotel and second home products are usually unable to generate particularly lucrative ROI. This is due to the nature of the product which requires full operational support to be able to compete with hotels and resorts once completed. The typical operating costs of a full service condotel or resort range from 33% to 42% but […]

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Rental Pool Structure and Unit Sale. Ensuring Quality in the Process

  Very commonly, Aparthotel, Condotel or Branded Residences offer a “Rental Pool Return”, which, at his simplest form, consist of revenue or profit split between developer and unit owner. We are often involved in reviewing and advising rental pool structures. In the majority of the cases we found that they are not well thought through […]

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Our support for this step

Careful consideration and planning of all aspects of the sales strategy before launch, to ensure that sales are systematically executed in a way that maximises sales realization while at the same time upholding and protecting the professional reputation of the developer and project. The full suite of sales and marketing collateral are prepared together with a tailored marketing and PR strategy.

In depth analysis on the rental pool structure through analysing practical structures successfully applied by competitive products and understanding the Cash Flow dynamics and their impact on management as well as integration with the sale and purchase contract.

Do You Really Need an International Brand? Are You Willing to Pay the Costs?

Very often we are asked to advice on selection and appointment of a management company. However, quite often, the project is simply “not ready” or, even simpler, international operator (or regional operators) would not be needed and, in certain cases, negatively impact on the ROI. 

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Our support for this step

Releases from the developer the significant pressure associated with property development from the planning stages through to construction and operation. The Turn Key package includes but is not limit to market study, development concept planning, feasibility study, tendering, appointment of key consultants, sales and marketing set up, pre-opening and management.

Ongoing management services from planning stages through to operation. Services include: asset operational review to detect problems and provide practical solutions, setting up of effective management structures and monitoring the operator’s effectiveness in the implementation of the operational plan and budget as well as planning for future improvements.