Project development
The first project idea
Through an initial Quick Check followed by a Pre-Feasibility Study we assess whether the available site is suitable for a hotel and if the competitive market conditions actually legitimate a new hotel. This in turn depends on the right product – since not every hotel concept has a crowding-out potential. Therefore our next important step is the Operational concept of the hotel, the type and size of the operation and the definition of the operator’s concept. By applying a simplified economic forecast, we can give a first indication of the expected cash flow or lease potential. By doing so, the basis for the Operator search is set. Thanks to our excellent industry contacts, we can assist you in the search process of finding a suitable operator or provide support during Contract negotiations.
The conception
In the next step, the conception will be translated into a Room and function program, which will be used by the architect as a basis for rough planning, which is alternatively useable in the sense of a different operator. After that, we develop an Estimation of investment costs and perform more accurate profitability forecast. At this point of the project, we deliver the pre-feasibility study to the customer which acts as the basis for financing (Bank financing) and the Investor search.
The construction
During the construction phase, we moderate between the economic interests of the developer and the claims of the operator through our Planning and construction supervision. We coordinate the Purchasing of FF&E (Furniture, Fixtures and Equipment), which is often a significant hurdle for investors unfamiliar with the hotel industry and is tailor-made in regard to conception and operator.
Quick Check
Based on the initial project idea, the Quick Check
gives a first indication whether it is worthwhile pursuing the hotel development. As a basis for internal decision making, the hotel check quickly and informally reflects if a specific site is suitable for a hotel, what type of operation is suitable for the site according to the market needs and if appropriate operators are available.
Services:
- Brief site analysis through an on-site inspection or via desktop research
- A first brief evaluation of the market and crowding-out potential, considering the competitive landscape
Next step:
In case of a positive outcome, the Quick Check forms the basis for a pre-feasibility study
Pre-Feasibility Study
The next step in the project development is a Pre-Feasibility Study. Following the initial Quick Check, the Pre-Feasibility Study helps to determine whether it is worthwhile pursuing a hotel project from a financial perspective. The study enables decision makers to foresee the appropriate size and category of the hotel as well as the expected level of profits for both operator and investor, even if they possess only minor industry knowledge. The Pre-Feasibility Study is the fundament for contacting and attracting potential operators - assuming the broad conception is already translated into a room and function program.
Services:
- Market, site and competitive analysis
- Broad conception
- Simplified economic forecast
Next step: Extension into a Feasibility Study that supports the search for suitable operators and investors.
Operational concept
The development of a hotel concept is fundamentally based on market needs (market gaps/ crowding-out potential), target groups and pre-conditions given through the available site. Our aim is to develop a business model which will generate the best possible returns in the long-run.
Services:
- Development of a USP (Unique Selling Proposition), defined through:
- Size and category of the operation
- F&B concept
- Leisure concept
- Conference concept
Next step: Based on the product concept, the required hotel infrastructure and the spatial needs will be defined - leading into a room and function program.
Operator search
A suitable operator is essential for the sustainable success
of a hotel. Through our experience, we are familiar with the requirements of operators and aware of their strengths and weaknesses. Thanks to our excellent industry contacts to key decision-makers within hotel companies we are able to enhance and simplify the often tedious search process.
Services:
- Concept development and preselection of suitable operators
- Creation of a property particular and information material
- Support during contract negotiations
- Supporting the interests of the investor / owner/ developer
Next step: Financing
Contract negotiations
Our advisory services during negotiation with the operator
is based on a economic and hotel-specific dimension and performed in close coordination with the lawyer of the investor or developer.
The aim is to draw a contract that also fulfils the requirements of other investors, especially institutional ones.
Services:
- Development of basic economic terms of the lease or management contract (term sheet)
- Determination of guarantees and minimum rents
- Elaboration of variable lease elements
- Negotiation of hotel-specific contract elements such as technical assistance fees, takeover modalities, cancellation clauses, references for targeted quality standards, etc.
Next step:
Hotel specific planning and construction advisory during the construction phase.
Room and function program
The room and function program describes the basic functional connections between the operational concept and the architectural planning. It acts as a guideline for planning architects and other specialists involved in the planning process.
Services:
- Definition of optimal number of rooms quantities, room sizes and the corresponding room mix (standard, deluxe rooms, suites)
- Space planning of public areas such as lobby and reception
- Determination of required floor space for F&B (restaurant, bar, bistro) and conference facilities (number of meeting rooms, size and array)
- Definition of wellness facilities
- Conception and space planning of operational departments – kitchen with adjacent areas, storage, administration, staff and utility management facilites
Next step: Hotel specific planning and construction advisory during the construction phase.
Estimation of investment costs
The accurate estimation of investment costs is a central
element within the hotel planning process. Investment costs contribute decisively to the decision of whether to go ahead with the project or not since they determine the profitability.
Services:
- Estimation of investment costs for the building, the public areas and the interiors are estimated in collaboration with architects and according to the German normative standard DIN 276.
- HOTOUR complements and verifies these estimates by using hotel-specific cost benchmarks. Moreover, we support the architects during teh planning and constrution process.
Feasibility Study
In addition to the Pre-Feasibility Study, the Feasibility Study acts as a neutral business plan for financing purposes and potential investors.
Services:
- All elements of the Pre-Feasibility Study supplemented by:
- Room and function program resulting from the operating concept
- Estimation of investment costs
- Detailed economic forecast: Three scenarios with 10-year projections
- Determination of the sustainable rent
- Determination of the investor's return
Bank financing
Due to a long-standing collaboration with financing institutes, HOTOUR enjoys an excellent reputation within the branch. We know the requirements of the banks which finance hotels and we take care that the required processes are implemented quickly.
Services:
- Consulting during the research phase for a suitable financing institute
- Creation of the required surveys according to the needs of the financing bank
- Preparation of the hotel-specific relevant information for the credit request
Next step:
Hotel related advice and support during the realization phase.
Planning and construction supervision
Our objective is to mediate between the different interests of
hotel developers/ investors and operators. We pay special attention to interior fittings and furnishings in particular - aiming at finding the best possible solutions for all parties involved.
Services:
- Participation in planning and construction meetings
- Verification and optimization of detailed plans
- Construction site inspections with the operator
- Final building inspection with the operator. Verification of the building description and quality definitions by the operator
Next step: Completion and hand-over of the hotel to the operator
Purchasing of FF&E (Furniture, Fixtures and Equipment)
Despite steadily increaisng requirements of operators towards FF&E standard, we aim at making the most efficient use of our client's budget.
Services:
- Control of the FF&E budget
- Coordination of all tender offers for interior design, kitchen, IT equipment and purchasing of small-scale operating equipment
- Supervision of deliveries, installation and assembly of all components
Investor search
Our support in finding a suitable investor enables clients to save valuable time. Through our industry intelligence we are able to preselect and target matching investors, thereby having all relevant information at hand to begin with first negotiations.
Services:
- Development of a concept and short-list of suitable investors
- Development of a sales particular and/or a memorandum of information
- Contacting potential investors
- Preparation and monitoring of the negotiation process
