The Hotels, Tourism and Leisure lifecycle
Investment Strategy and Planning
1
5
6
7
8
Click each stage to view more details
Pre-opening
Ongoing Operations
Exit Strategy
Transaction: Selling
Establishing and maintaining a clear, viable strategic plan is fundamental to the success of any hotel, tourism or leisure (HTL) investment and to ensuring stakeholder alignment.
From the group level to individual projects, we can help you crystalise a strategic vision and business plan while identifying, developing and repositioning opportunities, concepts and products to optimise commercial potential, value and returns. The preplanning phases are crucial in setting investment parameters and targets.
Overview
Key issues faced
How we can help
Investors can be tempted to jump into the sector on a relatively ad hoc, reactive basis pursuing a broad range of deals which appear too good to miss, but ultimately may not be compatible with stakeholder goals.
Horwath HTL Consulting
Capital Allowances
Corporate Tax
For more information on how we can help you at each stage, download our full pdf.
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Operator and Brand Negotiations
4
Transaction: Buying
3
Feasibility
2
Tech Risk
Risk Consulting (ESG)
VAT
Corporate Finance
Risk Consulting (ESG)
Forensic Services
Workforce Advisory
Tech Risk
Horwath HTL Consulting
Capital Allowances
Corporate Tax
Hospitality businesses are highly complex and require careful analysis to assess the
commercial opportunity and risks, they should consider alternative concepts and
operating models to ascertain their viability and how to extract the most value.
Suitable opportunities can be identified, analysed and prioritised. Estimating operating
cashflows, financial feasibility, investment returns, considering each business unit or
site’s unique attributes, the performance of the competitive market and forecasts of
future demand and supply are all essential at this stage.
Advisory support can provide an impartial assessment of project viability, while
recommendations on the product offering can form the basis of design briefs and
support shortlisting of third-party operators and brands.
How we can help
Key issues faced
Overview
Tech Risk
Risk Consulting (ESG)
Forensic Services
VAT
Workforce Advisory
Corporate Finance
Horwath HTL Consulting
Capital Allowances
Corporate Tax
Investors can lose out on opportunities by simply being too slow to complete due
diligence and submit competitive offers. Similarly, in the absence of sufficiently detailed
assessment of each prospective transaction, buyers risk over-paying for assets.
In a highly competitive market, timely specialist due diligence is a pre-requisite for any acquisition in the sector. Due diligence support is tailored to each unique transaction’s requirements and timeline establishing commercial potential, risks and fair value while taking into account proposed project finance arrangements.
How we can help
Key issues faced
Overview
Risk Consulting (ESG)
Corporate Tax
Tech Risk
Horwath HTL Consulting
Capital Allowances
Owners and investors typically have numerous management and branding options available to them. Selecting the most appropriate operating partners on commercially competitive terms is key to optimising investment returns.
Selecting the best operator and brand for each asset is a key factor in optimising investment returns. An experienced management and brand team will ensure that the property is competitively positioned, efficiently operated, and professionally maintained.
How we can help
Key issues faced
Overview
Forensic Services
Workforce Advisory
Recovery Solutions
VAT
Corporate Finance
Risk Consulting (ESG)
Horwath HTL Consulting
Capital Allowances
Corporate Tax
Substantial bid/ask gap and buyer and agent may have limited understanding of assets/ business potential – particularly where change or adaptation of use is possible.
The asset will be sold (or monetised) in accordance with the defined exit strategy.
A comprehensive investment memorandum may be prepared to set out the potential of the asset taking into account physical attributes, past performance and market potential.
Once a buyer is confirmed, then a purchase and sale agreement (PSA) is executed, and the buyer conducts its due diligence, secures financing (debt and/or equity).
How we can help
Key issues faced
Overview
Risk Consulting (ESG)
Recovery Solutions
Workforce Advisory
Corporate Finance
Horwath HTL Consulting
Capital Allowances
Corporate Tax
Without a clear exit strategy, owners may fail to take advantage of optimal exit timing and
value potential.
The exit strategy should be clearly defined within the investment plan taking alternative scenarios into account. This planning should be an integral part of determining the risk associated with investment and will directly influence strategic decisions.
Defined exit strategies provide a crucial level of clarity and comfort investors and their finance partners. Where changes to the exit strategy are necessary, clear communication with all stakeholders is critical to ensure alignment and optimise returns.
How we can help
Key issues faced
Overview
Risk Consulting (ESG)
Forensic Services
Risk and Assurance
VAT
Workforce Advisory
Business Solutions
Statutory Audit
Horwath HTL Consulting
Capital Allowances
Corporate Tax
Underperformance against competitive set, budget and/or owner expectations. Failure to optimise full commercial potential of the asset. Non-compliance with operating agreements and/or licencing or planning regulations.
It is important that the management team and asset manager operate and maintain the hotel to maximise operating profit, maximise asset value, and achieve any unique goals set. Together, their responsibilities include marketing, profitable revenue generation, human resources, physical asset management, financial administration, reporting and budgets.
How we can help
Key issues faced
Overview
VAT
Risk Consulting
Horwath HTL Consulting
Capital Allowances
Miscommunication between project (design and construction) team and operations team. Budget and schedule issues usually creep up at this stage. Unplanned opening delays with significant cost have implications for the owners and their stakeholders.
The months before opening require unique expertise to coordinate the transition from construction to operations to deliver a successful on-time and on-budget opening.
Proper planning and execution of pre-opening strategies can help a hotel to attract and retain top talent, control costs, build brand reputation, establish your systems and processes and create a seamless guest experience.
How we can help
Key issues faced
Overview
Risk Consulting (ESG)
Forensic Services
Workforce Advisory
Tech Risk
Horwath HTL Consulting
Capital Allowances
Corporate Tax
Hospitality businesses are highly complex and require careful analysis to assess the commercial opportunity and risks, they should consider alternative concepts and operating models to ascertain their viability and how to extract the most value.
Suitable opportunities can be identified, analysed and prioritised. Estimating operating cashflows, financial feasibility, investment returns, considering each business unit or site’s unique attributes, the performance of the competitive market and forecasts of future demand and supply are all essential at this stage.
Advisory support can provide an impartial assessment of project viability, while recommendations on the product offering can form the basis of design briefs and support shortlisting of third-party operators and brands.
How we can help
Key issues faced
Overview
Tech Risk
Risk Consulting (ESG)
Forensic Services
VAT
Workforce Advisory
Corporate Finance
Horwath HTL Consulting
Capital Allowances
Corporate Tax
Investors can lose out on opportunities by simply being too slow to complete due diligence and submit competitive offers. Similarly, in the absence of sufficiently detailed assessment of each prospective transaction, buyers risk over-paying for assets.
In a highly competitive market, timely specialist due diligence is a pre-requisite for any acquisition in the sector. Due diligence support is tailored to each unique transaction’s requirements and timeline establishing commercial potential, risks and fair value while taking into account proposed project finance arrangements.
How we can help
Key issues faced
Overview
Risk Consulting (ESG)
Corporate Tax
Tech Risk
Horwath HTL Consulting
Capital Allowances
Owners and investors typically have numerous management and branding options available to them. Selecting the most appropriate operating partners on commercially competitive terms is key to optimising investment returns.
Selecting the best operator and brand for each asset is a key factor in optimising investment returns. An experienced management and brand team will ensure that the property is competitively positioned, efficiently operated, and professionally maintained.
How we can help
Key issues faced
Overview
VAT
Risk Consulting
Horwath HTL Consulting
Capital Allowances
Miscommunication between project (design and construction) team and operations team. Budget and schedule issues usually creep up at this stage. Unplanned opening delays with significant cost have implications for the owners and their stakeholders.
The months before opening require unique expertise to coordinate the transition from construction to operations to deliver a successful on-time and on-budget opening.
Proper planning and execution of pre-opening strategies can help a hotel to attract and retain top talent, control costs, build brand reputation, establish your systems and processes and create a seamless guest experience.
How we can help
Key issues faced
Overview
Risk Consulting (ESG)
Forensic Services
Risk and Assurance
VAT
Workforce Advisory
Business Solutions
Statutory Audit
Horwath HTL Consulting
Capital Allowances
Corporate Tax
Underperformance against competitive set, budget and/or owner expectations. Failure to optimise full commercial potential of the asset. Non-compliance with operating agreements and/or licencing or planning regulations.
It is important that the management team and asset manager operate and maintain the hotel to maximise operating profit, maximise asset value, and achieve any unique goals set. Together, their responsibilities include marketing, profitable revenue generation, human resources, physical asset management, financial administration, reporting and budgets.
How we can help
Key issues faced
Overview
Risk Consulting (ESG)
Recovery Solutions
Workforce Advisory
Corporate Finance
Horwath HTL Consulting
Capital Allowances
Corporate Tax
Without a clear exit strategy, owners may fail to take advantage
of optimal exit timing and value potential.
The exit strategy should be clearly defined within the investment plan taking alternative scenarios into account. This planning should be an integral part of determining the risk associated with investment and will directly influence strategic decisions.
Defined exit strategies provide a crucial level of clarity and comfort investors and their finance partners. Where changes to the exit strategy are necessary, clear communication with all stakeholders is critical to ensure alignment and optimise returns.
How we can help
Key issues faced
Overview
Forensic Services
Workforce Advisory
Recovery Solutions
VAT
Corporate Finance
Risk Consulting (ESG)
Horwath HTL Consulting
Capital Allowances
Corporate Tax
Substantial bid/ask gap and buyer and agent may have limited understanding of assets/business potential – particularly where change or adaptation of use is possible.
The asset will be sold (or monetised) in accordance with the defined exit strategy. A comprehensive investment memorandum may be prepared to set out the potential of the asset taking into account physical attributes, past performance and market potential.
Once a buyer is confirmed, then a purchase and sale agreement (PSA) is executed, and the buyer conducts its due diligence, secures financing (debt and/or equity).
How we can help
Key issues faced
Overview