Since the pandemic snuffed out hotel room demand, hoteliers have been digging through the resulting financial rubble in search of revenue. Unfortunately, focusing solely on revenue generation from rooms can obscure financial recovery vision.
Under a hotel lease agreement, the owner of a hotel property leases it to the tenant, who uses it to run its hotel business. The owner (landlord) has no control over the property's operation and bears no risk and liability for the hotel business.
The Operator Selection ProcessOperator selection is undertaken by developers and owners for the appointment of the hotel management operator. The process involves candidate identification, screening, and contract negotiations, generally together with the owner's legal counsel.
Hotel OwnersThe owner of hotel property - the site and building as well as the furniture, fixtures and equipment (FF&E) and operating supplies and equipment (OS&E) - is the hotel owner. The owner receives the return on the investment in the property but also bears the risk of property ownership.
The development manager has overall responsibility for the control of project risks and any actions associated with them throughout the project life cycle. The development management agreement (DMA) governs the relationship between the contract parties, minimizes the project risks, and increases the efficiency and quality of the resulting development.
Project Development Management (308)Development management is the strategic planning, administration and controlling of a project during its development life cycle, from project planning through to construction completion and project exit.
Architecture and DesignArchitecture is the skill and process of designing a structure, its exterior geometry and finishes, and defining the general interior layout of the building to enable its operational and logistical functions.
Construction project management is the coordination and supervision of a project's construction process, from early planning to erecting and finishing the product for project close-out. It is a function of overall development management.
Assessing Project Financial FeasibilityThe financial feasibility study (FFS) determines if or confirms that a project is potentially profitable, it including financial and scenario analysis and an investment appraisal.
Hotel Feasibility StudiesFeasibility studies are conducted by developers to analyze and confirm the optimal product to maximize market penetration, performance and the internal rate of return on investment (ROI) for the product's intended holding period.
