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RESORT DEVELOPMENT IS ROCKET SCIENCE!

THE LAUNCH OF A LUXURY RESORT IS A SCIENCE…..BUT POTENTIALLY A BLACK HOLE Too many Developers have lost their fortunes from the belief that resort development is quite simple and all they need to do is design the resort, hook a hotel brand & operator and then get the financing. Our company has the luxury (and privilege) of reviewing hundreds of project plans each year to determine whether they are investment-ready and financeable. The projects…

Financing a hotel or resort is like cooking a steak perfectly.

It is quite simple. Timing, ingredients, the market and experience is critical……but success is buried in the touch, the feel and the presentation. If you really know how to serve a steak right, you know how to buy it…..from the market, age it…… in the air, you know how to butcher it on the block, and you know how to deliver that perfect cut of well-measured meat to the range….. at the precise time that…

Capital sources – Outside the box

While spreads are increasing and loan levels are decreasing in the current economic environment, market circumstances do not change the fact that there are hundreds of billions of dollars in play in hotel and resort development, necessitating significant amounts of capital to be raised by owners and lenders alike. Given this fact, demand for credible and reliable capital sources is at an all time high. Our firm has access to equity and debt capital all…

Feasibility Studies for Dummies

Feasibility Studies for Dummies

Here are a few of the questions that get asked – with straight faces – when developers seek feasibility studies; “Can you make this poorly-defined project financially feasible?” “Can you give me proof that this 4 Star 250 room hotel with a 3 Star budget will work?” “Can you do a ‘quickie’ study for half-price by changing the name on the last study you did here?” “Can you produce a fictional study that will convince…

Top 10 Development Building Blocks for Newbs

For those outside the industry who have successfully reached a point where they have done it all and are now ready to add a hotel or resort asset to their portfolio, road maps can be hard to come by. Most high net worth outsiders to the business assume an “Easy as 1-2-3” scenario; Build a hotel. Get a hotel company to invest. Reap huge profits. Unfortunately, Monopoly this is not. Certain crucial ducks need to…

Hospitality in the 21st Century

Hospitality in the 21st Century

With the vast majority of the industry still languishing in the 1950’s in the ways hotels are designed, built and run, only the newcomers seem to be bringing a fresh perspective to the business. It perhaps makes perfect sense that those that are inexperienced are succeeding in our industry with cutting edge ideas and technological efficiencies while the veterans copy the sins of our past ad nauseam. The challenge of actually running a hotel is…

What’s in a Brand

What’s in a Brand

For 4 and 5 star branding specialists, the decision whether to start from scratch or spin off an old brand and start with an instant chain is a difficult one. A hotel brand needs geographic spread to attract owners and a hotel needs a market to attract customers. Now comes the million dollar questions. Who pays for the risk of ¬†creating a brand? Who pays for the risk of building a hotel under a new…