Brush & Company Services Banner


Expert Hotel and Resort Management Advisors

With more than 45 years experience in the hotel industry, both in operations and consultancy, Brush & Company has the education and recognized expertise to provide high quality, "principal-involved" consulting services to all types of hotels and resorts.


Hospitality Consulting Services
ISHC Cayuga Cornell Hotel Society Steckroth Hospitality Group

Fieldwork and Analysis | Financial Estimates and Formal Report

Hotel Market Surveys

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":

Task 1 – Fieldwork and Analysis

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:

  • Client meeting to detail the project and any existing plans or background information that is available on either the subject or other developments in the general market area, both hospitality and/or tourism related as well as significant commercial and/or residential projects. The more information that can be provided "up-front" the more focused/pertinent the ultimate study.
  • Touring the hotel/site as well as the general area to evaluate access, visibility, existing infrastructure, location, the surrounding aesthetics and other developments. We will also analyze market demand generators and area and/or market segment economic/demographic trends as available.
  • Interviewing representatives of competitive or comparable hotels in the market to gauge past and present occupancy; attained room rates; and the market demand segments currently being served. This information is supplemented with in-house information and published statistical data such as Smith Travel Research reports.
  • Obtaining information from local government officials, tourism representatives, demand generators and/or others to identify proposed or rumored developments as well as sources of demand that might impact the estimated future operating performance of the subject hotel.

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.

Task 2 – Financial Estimates and Formal Report (optional)

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.

Limiting Conditions

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:

  • Neither the report (interim or final) nor any material submitted may be included as part of an offering statement, prospectus or in printed material or advertising used in connection with the sale of securities or participation interests to the public.
  • The scope of the study and report will not include the possible impact of existing or future zoning or environmental regulations, licensing requirements or other legal or regulatory matters unless they are disclosed in the report.
  • The long-term effects of political events (starting on September 11, 2001) on the tourism industry as a whole have been mostly overcome, but additional events (economic, political or climatic) could significantly change future operating results.
  • The report will be based on estimates, assumptions and other data developed during the engagement. Some inevitably will not materialize, and unanticipated events or circumstances may occur; therefore, actual results achieved will vary from that shown, and the variations may be material.

Task 3 – Formal Report

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.

Engagement Timing and Fees

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.

Hospitality consulting services

Asset Management

Asset Management

Assistance to owners or lenders for a specific hotel or group of hotels including the monitoring of performance and quality control.

Learn More
Operational Diagnostics

Operational Diagnostics

Geared to improving the operating performance of hospitality assets for management, ownership or lenders

Learn More
Hotel Market Surveys

Hotel Market Surveys

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