Global Market Advisors has worked on hospitality projects in over 40 countries. The work includes assisting governments with public policy for integrated resorts (IR’s), assisting public and private companies with evaluating new markets and performing due diligence on potential acquisitions. Regardless of the locale, GMA has the experience to assist the client with any hotel development, acquisition or expansion project. As part of these services, GMA is able to assist clients with contract negotiations including development and management agreements.
Hotel Feasibility Analysis
GMA’s approach to hotel feasibility analysis is to first understand the wants and needs of the market. In evaluating a hotel it is important to understand the market in which it does or will operate. Is there an existing base to which a comparison can be made or is a bottoms up analysis required? Is there something about the hotel that will create new demand or create a micro operating environment? Once a full understanding of the client’s vision is is realized and a realistic view of the market estimated, GMA can prepare accurate forecasts for the hotel.
Often hotel feasibility studies are conducted for casinos. Casino-hotels operate in a unique environment as much of their room demand is generated by the casino’s database. GMA fully evaluates the casino’s database to estimate the levels of demand for hotel rooms by tier level, season and day of week. In this analysis not only is Rooms Revenue quantified but the overall RevPAR (Revenue Per Available Room) is determined as is the incremental gaming revenue that will be generated by hotel guests visiting the casino.
Once the needs of the market are aligned with the vision of the owner, GMA proceeds with the preparation of the hotel feasibility study, ultimately determining the size of the hotel, the quality level, the number of standard rooms and suites, whether it should have a nationally recognized flag and the expected average daily rate and occupancy rate. With gross revenues determined, GMA then builds a ProForma Income Statement.
Development & Joint Ventures
Often resort development is a new process for an entity. GMA has experience in dozens of hotel, casino and resort developments. To this end GMA prepares a strategic plan for the client to ensure the process is provided within the right strategic roadmap. For those developers who may not have the time and resources, GMA can provide oversight during the entire development process to ensure the project is properly financed, stays on time and on budget. With GMA’s extensive relationships in the gaming, hospitality, tourism and airline sectors, the company can put together joint ventures that result in win-win arrangements between entities.
As part of any development and operation, parties must have an effective contract that ensures each sides rights are protected and structure that properly incentivizes both sides. GMA is experienced in contract negotiation and crafting language to ensure that a win-win relationship is formed. As part of the development process, companies must understand the appropriate corporate structure for the jurisdiction to which they are about to enter, navigate various employment issues, understand any applicable marketing restrictions and how to legally handle debt collection. GMA can provide these services across North America and Asia.
Food & Beverage
In hospitality enterprises, food and beverage (F&B) can bring significant levels of revenue to an operation. However, for gaming operators F&B is often a loss leader, or at best, a near breakeven proposition. Whether it is an integrated resort, stand-alone hotel or a casino, having a profitable F&B operation is of paramount importance.
The first step in creating profitable F&B operations is to ensure that the proper mix of dining products are provided to the customer. These may include quick-serve, casual restaurants and fine dining. Second, with the dining products understood, is a quality product being delivered and marketed to the customer inducing the return visit? Finally, ensuring that the costs of goods sold and labor are in line will then lead to profit. GMA has in-depth experience in all aspects of F&B operations from facility programming, to marketing, to day to day operations. GMA can help design the right dining options and forecast those results to help the enterprise improve F&B profitability.