You want to know if your project is economically viable, and we can assist with Income and Development Cost Pro Forma that will drive your return equation.
Understanding the current and potential hotel performance within your market can be foretelling of your hotel's performance and potential ease of market exit, if and when you decide to sell.
The hotel business is a "street corner business" and understanding how your specific site fits into the market is critical to understanding the prospect of project success.
We will evaluate primary demand generators. At the same time, we will gauge the current competitive hotel supply and potential development pipeline.
Hotel brands all have costs associated with development, fees, and expected revenue performance. We can help you select the best balance of income potential, relative to cost. Developing a Boutique/Independent hotel may be your best course.
One of the first steps in hotel development is programming the number of guest rooms, suites, food and beverage outlets, as well as other amenities. Peck Hotel Consulting can work with you to determine the optimum programming package.
We can provide you with the knowledge needed to reduce risk and create profitable ventures while taking you through our array of development services that carry your project from start to finish.
ROI can be calculated from a simple formula:
ROI = NOI/Total Development Cost
We have an iterative process using data, a network of industry contacts, and "boots-on-the-ground" interviews to assist you in selecting and evaluating your potential hotel site.
Programming can include recommendations for the number of rooms and suites, room mix, size of meeting and banquet space, parking, back of the house requirements, and supporting amenities.
Our guidance through the evaluation of your brand and franchise options can make a difference in your returns. The brands each have national rev pars, development costs, and franchise fees. Selecting the available brand that will have the highest rev par relative to cost is crucial in maximizing your project return.
We can recommend hotel-specific architects, designers, general contractors, and procurement companies with proven track records.
We can quickly produce a 5-year income Pro Forma and/or facilitate “first blush” cost estimates. Our point of differentiation is the depth of operating knowledge relative to most who do this work. We understand what is behind the numbers.
The decision that will most impact your NOI is the selection of the management company, more specifically, who you approve to be your General Manager. We have selection tools that can maximize your chances of success.
For select owners, we will provide full oversight responsibilities from predevelopment through operation.
With a Certified Hotel Asset Manager (CHAM) on the Peck team, owners use us to review current property level performance in comparison to “best-in-class” metrics. We can calculate the value of any gaps in current operating performance and make “implementation-ready” plan adjustments to achieve full economic potential.
Should you consider selling, upgrading, changing brands, or changing management companies? We can help you think through these and other strategic decisions.
Peck Hotel Consulting can work with the brand to steer limited resources into the areas that will generate the most value and return on your capital spend.
Major hotel brands have system costs and relative RePar performance. We can help you select or change to the best option for your location and market. In certain high-demand markets, an independent hotel could be your best option.
Management company selection will impact your NOI more than any other decision. We can help you select the best option for your property while monitoring and influencing their performance.
We can work with your management company to ensure the annual business plan and CapEx plan target key opportunities, as well as reduce potential competitive risks.
Aside from management company selection, the most significant impact on your NOI and/or EBITDA will be the selection of the general manager and other key hires. Peck Hotel Consulting has talent selection tools that can help ensure the right candidate is approved.
We can coordinate with the management company to ensure timely and accurate monthly/annual reporting for your hotel(s).
Hotel Acquisition comes with risks, and understanding those risks early in the process is critical in developing your price/offer. Peck Hotel Consulting can help identify, quantify, and plan to eliminate or mitigate these risks inherent in a hotel deal.
Let us help you navigate the acquisition process.
It is essential to understand the durability of the primary demand generators, the quality of the competitive set, and any future supply risk.
Peck Hotel Consulting can assist in evaluating the seller's Due Diligence materials and current operating performance, including financials, property improvement plan materials, quality assurance reports, and incentives.
If changing brands is viable, we can help you think through the brand options to determine which is best for your location/property. We can also assist with reviewing the business terms of your Franchise Agreement.
We can evaluate the current Management Company's performance, and if a change is needed, we can recommend high-quality options and assist the new hotel management agreement.
Most hotel transactions come with a PIP, and Peck Hotel Consulting can oversee the entire PIP/renovation, including budget development, brand interface & negotiation, and leading the team to complete the work.
We offer a full suite of Asset Management services. Please see our Asset Management tab for a complete listing.