OUR SPECIALISTS ARE Here to Assist you
Of all the real estate asset types, hospitality properties are amongst the most challenging to handle. Having specialized knowledge is essential to be able to provide a quality service to both investors and users.
Within this sub-sector there are, amongst others, city hotels, resort hotels, motels, guest houses, serviced apartments, vacation clubs, and even timeshare or fractional ownership properties.
It’s not only the physical premises that have to be considered but it’s likely there will be a business running at the property. But, we have the right experience, so, whether you are a landlord or tenant, operator, seller, or buyer of hospitality assets, one of our professional commercial property advisors at Century 21 will be able to assist.
Most major hotels are owned by large corporations, investors, REITs, sovereign funds, or private family wealth. There is, most times, a distinction between the ownership and the operation, with a high percentage of hotels being operated by specialized hospitality operators under a brand name. This may be via a management contract or franchise or lease.
It’s essential to know how hospitality businesses run in order to give the best advice about sales, leases, licenses, or management contracts, as well as the benefits of branding or not branding a property.
Let us help you with some of the following issues…
TYPE OF PROPERTY/LOCATION
What is the scale of the asset, i.e. a 400 room city hotel or a 20 room boutique property operating in a market niche? How important is the location in terms of proximity to the customer base or does the property draw customers to it as it is unique, with maybe a great view, or in a setting of natural beauty?
STANDARDS AND ACCOMODATION PROVIDED
Is the property built to 5-star standards, or as a budget property? What types of rooms are available? Does the asset comprise rooms only or have ancillary supporting features such as restaurants or meeting or convention space? Is there an opportunity to change the positioning of the property?
Are customers likely to be traveling for business or leisure or has the property been purpose-built for MICE business or ancillary accommodation to, say, a casino? Is the market seasonal with big swings in occupancy according to month, such as in many resorts?
BRANDED OR NOT?
Is the property branded and, if so, with which brand? How does it fit into and perform against its competitive set? Is it better to have no brand but a local reputation?
DURATION OF MANAGEMENT CONTRACT
If ownership differs from the operator is there a management contract or franchise agreement or even a lease in place? What are the key terms and how long does such agreement last?
There are various structures by which a hospitality asset may be operated and, in some cases, an operator may lease the property, being responsible to pay rent and other outgoings. It’s, obviously, important to know and understand the full details of any lease or such other type of agreement.
Century 21 has specialists who are both knowledgeable and experienced regarding the above issues. We can provide a full service to suit all of your hospitality requirements.
When you are ready for a discussion, whether you are an owner, an operator, a tenant, a buyer, or a seller, all you have to do is call or email us right away!
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