Operator Selection for a Mixed-use Resort – Cam Ranh, Vietnam
After several years of delay, the developer resumed development of the large scale project and commissioned Alternaty to find and appoint a suitable resort operator.
Upon completing an initial review of the master plan and development scheme, Alternaty identified critical shortcomings. The master plan, which was designed by a top tier designer several years prior, was not only outdated, it lacked creativity, unique selling points and basic operational provisions. Furthermore, the developer’s vision for the resort concept was unrealistic and failed to incorporate hotel management fundamentals.
Alternaty provided advice on adjusting the development scheme to be more appropriate with the market conditions and also shared the concerns that were expected to be raised from the hotel operator’s perspective.
After review of all operator options and carefully considering all the advantages and disadvantages, the targeted operators were selected, and competitive commercial terms were reached.
In conjunction with the developer’s vision, Alternaty’s recommendations and the hotel operators perspectives, it was decided to split the development into two independent resorts. As a result, each resort would then be able to specifically cater for the different market segments, instead of one that would comprise on the needs of both, as well as on the developers vision and the operators requirements.