Hoteliers
Today owner-managed hotels often face unique challenges. The rising number of chain affiliated hotels and growing customer expectations increasingly put pressures on them. Even in turbulent market situations, individual and customized hotel concepts have a great chance of success, if their owners manage to keep the business up-to-date. The related need for capital requires a continous and trustful relationship with the financing bank. With its long-standing experience, HOTOUR is aware of the challenges facing private hoteliers on the one hand and the requirements of the lender on the other hand. Our mission is to ensure that the owner-managed hotels remain on the winning streak or find their way back there.
Frequently asked questions:
Assessment of Acquisition/ Hotel-Specific Due Diligence
Goal: basis for pricing and purchase decision, overview about opportunities and risks of the hotel real estate, the location and the operator.
Services:
- Assessment of the opportunities and risks of the hotel property and the site, the local hotel market, the type of operation and the operator´s contract,
- Evaluation of the alternative use in the sense of a different operator,
- Evaluation of a potential need for renovation,
- Assessment of the need for investments,
- Evaluation of potential in the operation and its environment.
Next step:
Purchase
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.
Business Plan analysis
This tool provides valuable feedback to hotel owners on the quality and soundness of the self-produced business plan. This service also benefits investors and financial institutes that try to validate the business plan of operators and other borrowers. Particularly, we focus on the feasibility of financial forecasts and the ability to cover lease or debt service obligations in the long-run.
Services:
- Thorough analysis of the operational figures and financial forecasts
- Assessment of forecastsbased on the market environment
- Assessment of cost forecasts based on the operating concept
- Verification of the ability to cover debt service obligations
Next steps – depending on the results of the analysis:
Coaching, Controlling/Monitoring
Business Plan development
The future positioning and business policy of the hotel will be based on the thorough development of the business plan. Additionally, we support our clients with the implementation of all recommended actions.
Services:
- Definition of the short-term, medium-term and long-term corporate goals,
- Conception of a marketing plan,
- Development of a 5-year financial forecast,
- Listing of all recommended actions and single steps.
Next steps – depending on the results of the analysis:
Coaching, Controlling/Monitoring
Analysis of weaknesses
This analysis provides the client – hotel owner, operator or financing institute – with a detailled overview of the current performance of the hotel, its weaknesses and suggestions in order to eliminate them.
Services:
- In-depth analysis of operational figures
- On-site analysis of operational processes over several days
- Throrough assessment of the hotel surroundings, relevant competitors and external presentation
- Detailed determination of the ability to cover debt service obligations
Next steps – depending on the results of the analysis:
Creation of a business plan, coaching, controlling / monitoring or restoration surveys.
Hotel Check
The hotel check acts as a first site analysis for the client – hotelier owner and operators as well as financing institutes or potential buyers. Created as a basis for internal decision making, it quickly and informally reflects the hotel's weaknesses and outlines the potential ways to eliminate them. This brief analysis is also highly suitable prior to a planned hotel purchase.
Services:
- Brief evaluation of the operational figures, the hotel surroundings, its external presentation and marketing as well as the sustainability of the debt service coverage
- Assessment of the future potential of the hotel property and the operator,
- Evaluation of re-leasing, sale or purchase prospects.
Next steps – depending on the results of the analysis:
Creation of a business plan, coaching, controlling or in-depth analysis of the weaknesses, change of operator, sale / investor search.
Appraisal reports
Objective: determination of the sustainable rent and calculation of the capitalized income value based on the sustainable cash flow of a hotel.
Services
- Leasehold value reports for hotel projects and existing hotels are being developed on the basis of a location and market analysis, an evaluation of the hotel concept and a 10-year cash flow forecast
- Valuation reports are being carried out according to the income approach to valuation (WertV) and by applying the internationally used discounted cash flow method (DCF). If an asset value method is needed to validate the income approach to valuation, it is being developed together with experienced architects from our extensive network
Next steps:
Purchase and sale, bank financing
How do I find a buyer for my hotel?
Following a brief Hotel Check, this issue is best to be clarified in a personal consultation session. In our role as consultants we inform our clients about the potential opportunities and risks of the sale and provide them with individual advice.
Future prospects of hotel operation?
Does my hotel operation have prospects of success over the short, medium and long term?
We can answer this question through an Analysis of weaknesses that in spite of its name evaluates the strengths as well as the weaknesses, but above all the (still unexploited) potential of a hotel.
How to prepare for bank financing?
How do I prepare for negotiations with my financing bank?
Thanks to its excellent contact to banks, HOTOUR provides advice during the search for a suitable financing partner (Bank financing), drafts the appropriate hotel-specific documents for the loan application and prepares the required Appraisal reports according to the specifications of the bank providing the financing. Perhaps a glance at our Checklist will also be helpful during the first step towards successful hotel financing.
Is the purchase of the hotel advisable?
How to get a business plan?
The financing bank requests a business plan. What needs to be done?
In order to check whether or not the positioning, real estate and operating concept, personnel planning, marketing concept and efficiency of a hotel or a hotel project are plausible and that the hotel can be successful over the long term, the banks expect business plans. We support the hotelier during Business Plan development or Business Plan analysis if the Business Plan is already existing.
Purchase price appropriate?
Is the purchase price of a specific hotel appropriate?
If the initial review (Hotel Check) produces a purchase price band width that seems plausible to the hotelier, then the question can be answered in detail in the course of Appraisal reports.
