Brush & Company is is uniquely qualified to provide a wealth of expertise to small or large individual projects or multiple location studies for clients ranging from major institutional investors to local independent owner/operators. The program for a typical market survey is divided into two individual "tasks":
This task includes background research, on-location fieldwork and initial analysis leading to a written "Opinion on Performance" (focusing on the attainable occupancy levels, average daily rates and RevPAR) for the subject hotel project. This document is typically used in discussions with possible brand affiliations and prospective management companies as well as initial conversations with potential primary lenders or joint venture partners. Elements of this task include:
Based on this foundation, we estimate market growth, evaluate principal segments of demand and issue (via email) an "Opinion on Performance" report which includes recommendations as to number of rooms, type of facility, quality/price level, brand affiliation (if any), in-house amenities, on-premises facilities, etcetera, within the context of the stated development parameters. Based on this definition, we also provide five-year estimates of occupancy, annual average room rates and RevPAR.
Following the interim report we develop estimates of operating results (income and expenses based on the "uniform system" of accounts for hotels and resulting in an amount for debt service for the property’s initial operating years.
Following the "Opinion on Performance" report, and only after specific authorization to proceed, we continue the process with estimates of financial operating results for the project as proposed and recommended.
This portion of the assignment focuses on multi-year estimates of operating cash flow before debt service in inflated dollars based on a "representative" year at a stabilized occupancy level in current year dollars.
Concurrently the complete narrative report, an expansion of the Performance Opinion provided previously, is developed to present the data (except that obtained confidentially), analyses and reasoning which support the conclusions outlined. The financial statements are accompanied by a description of individual line items and their derivation.
Reports are issued in a format normally acceptable to major sources of financing, franchise and management organizations. The report may be used with these companies, but is subject to the following limitations:
At the conclusion of the survey process, a formal narrative report is issued to present the data, analysis, and reasoning that support the conclusions. The financial statements are compiled with a description of individual line items and their derivation including industry averages as published by Smith Travel Research.
Studies normally start within five to ten days of authorization while both Task 1 and Task 2 typically take ±2 weeks to complete. Fees, quoted inclusive of all normal expenses, vary by size and type of hotel (full-services, select-service, limited-service, extended-stay, etcetera) as well as by the complexity of the market and the initial development parameters.
Since most expenses are incurred "up-front", a retainer of approximately 60 percent of the Task 1 fee is required prior to scheduling the assignment. A further payment will be required to authorize Task 2 and all fees and expenses must be paid before release of the full report in final form.
Assistance to owners or lenders for a specific hotel or group of hotels including the monitoring of performance and quality control.Learn More
Geared to improving the operating performance of hospitality assets for management, ownership or lendersLearn More
including feasibility and strategy studies for existing or proposed facilities; due diligence for asset acquisition; property or market evaluation; initial financial estimates/analysis...Learn More