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 Feasibility Study to the customer which acts as the basis for 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.
Ten Crucial Errors in Hotel Project Development
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
The next step in project development is a pre-feasibility study. Following the initial quick check, the pre-feasibility study helps to determine whether it is worthwhile pursuing the 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 investor and operator, 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.
A suitable operator is essential for the sustainable success of a hotel. Through our accumulated 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 / developer
Next step:
Financing
In addition to the Pre-Feasibility study, a 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 forecasts: Three scenarios with 10-year projections
- Determination of the sustainable rent
- Determination of the investor’s return
Due to a long-standing collaboration with financial institutes, HOTOUR enjoys an excellent reputation within the industry. We know the requirements of banks that finance hotels and ensure a quick implementation of the required process.
Services:
- Client consultation in finding a suitable financial institute
- Creation of appraisal reports according to the specifications of the financing bank
- Preparation of the hotel-specific information relevant for the loan application
Next step:
Hotel-specific planning and construction advice during the realisation phase
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 fact sheet
- Contacting potential investors
- Preparation and monitoring of the negotiation process
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 solution 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
Despite steadily increasing requirements of operators towards FF&E standards, we aim at making the most efficient use of our clients’ budget.
Services:
- Control of the FF&E budget
- Coordination of tender offers for interior design, kitchen, IT equipment and purchasing of small-scale operating equipment
- Supervision of deliveries, installation and assembly of all components
