hotel property specialists · 2018. 11. 5. · hotel apartments branded residences macro analysis...
TRANSCRIPT
Hotel Property specialists
Arabian Gulf
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Incisive strategies, total capability and a research led approach
INVESTMENT DEVELOPMENT CONSULTANCY ASSET MANAGEMENT
● Investmentstrategy
● Assetselection
● Duediligence
● Marketentrystrategies
● Highest&best-use
● Developmentrecommendations
● Financialfeasibility
● Valuations
● Operatorselection
● Managementcontractnegotiation
● Leasenegotiation
OUR SERVICES
Consultancy processWeprovidedevelopmentstrategyrecommendationsforawiderangeofhospitalityandmixed-userealestateprojects,typicallyadvisingondevelopmentmix,marketpositioning,andtargetmarkets.Assuchweensurethattheconceptisalignedwiththefuturemarketsituationwhilemaximisingtheowner’sreturns.
OUR SERVICESOur hospitality real estate team is well versed to support you in pursuing your investment strategy as well as in developing hospitality and mixed-use real estate projects.
Tourism analysis
Passenger arrivals
Source markets
Tourism receipt
Demand generators
Room nights ALoS
Siteassessment
Siteanalysis
Access & egress
Dev. guidelines
Zoning
Adjacent uses
Infrastructure
Topography
Lessonslearnt
Benchmarkexercise
Domestic
Regional
International
MarketKPIs
Marketanalysis
Hotels
Hotel apartments
Branded residences
Macrooverview
Macroanalysis
Political
Economic & legal
Demographic
Tourismoverview
Conceptdefinition
Financialanalysis
Viabilitystatement
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Operator selection processVirtuallyallhotelmanagementandfranchiseagreementsaredraftedbyoperators.Contractsarerarelytransparentandassuchdonottendtobenefittheprojectownerorinvestor.
AtKnightFrank,ourprofessionalswillassistinmitigatinganypotentialpitfallswhilstaimingforfairreciprocity,resultinginahighercapitalvalueforyourproperty.
Thefeasibilityreport,basedontheco-developedconceptbetweentheclientandKnightFrank,providesanindependentandbankabledocumentforthepurposeofraisingfinance.ThisreportcomeswithareturnanalysispercomponentincludingIRR,NPV,paybackperiodandROI.Inaddition,werunbreak-evenandsensitivityanalysesonkeyvariablessuchasdevelopmentcost,occupancyandaveragedailyrates(ADR).
MARKETPOSITIONING
RESORT
GOLF
BUSINESSSHARIA
CONVENTIONHERITAGE
Detailed market analysisThemainfocushereisonprimaryresearch.Weundertakein-depthinterviewswithkeyindustryexpertstogainmarketintelligencerelevanttoyourproject.Interviewsarecommissionedwiththelikesofhotelgeneralmanagers,airportrepresentatives,developersofcompetingproperties,costconsultants,municipalplannersandtourismauthorities.
Revenue mix
Occupancy
ADR
Business mix
Demand generatorS
SourcemarketS
OPERATOR SELECTION PROCESS
OPERATOR SELECTION PROCESS
● Determinepreferredmodel(franchise vs. management vs. lease)
● Setselectioncriteria(classification, positioning, brand, etc.)
● Prepareteaserdocument
● Evaluateexpressionsofinterest
● Generateshortlist
PREFERRED OPERATOR / BRAND
● Shareinformationmemorandum
● Evaluateheadsofterms
● NegotiateMoU¹
● SignMoU¹withpreferredbidder
SIGNED AGREEMENT
● ReviewHMA²
● Negotiateterms
● SignHMA²
1) MoU: Memorandum of Understanding2) HMA: Hotel Management Agreement
Our Knowledge-basedapproachBased on the project’s location and our market findings we recommend a competitive market positioning for the project to minimise development risks and enhance returns.
Moreover,werecommendontheoptimummixintermsofnumberofkeysbyroomtype,roomsizes,facilitiesandamenities.
Ifrequired,wecantestanumberofscenariosfortheprojectincluding,butnotlimitedtothefollowingconcepts:
● Brandedresidences● Sale&leaseback● Fractionalownership
“TheKnightFrankresearchteamhelpedsavemillionsanddebunkedourassumptionanddecisionsto
proceedwiththeproject”.
Roger Heong Weatherford Real Estate
Manager
ResearchWecombinepropertyandfinancialexpertisetoprovideyouwithtimely,accurateandrelevantinformation.Ourofficesprovidein-depthlocalmarketknowledgeofthehospitality,commercial,residentialandretailmarkets.Weproduceregularresearchreportsandmarketinsightswhichdemonstraterealmarketknowledge.
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OURTrack record
Beach HotelDubai Marina - UAE Theclientownedaprimepieceofbeach-frontlandinDubaiMarinaandwaslookingtodevelopaniconichospitalitydevelopmentincludinghotelandservicedapartments.
Our roleInadditiontorecommendationspertainingtothefacilityandroommix/count,afully-fledgedfinancialfeasibilityassessmentwasconducted.Thisincludedsensitivityanalysesondevelopmentcosts,averageratesandoccupancylevelsandwasinclusiveofhotelP&Landcashflowstatements.
Yas Island Abu Dhabi – UAE
TheYasIslanddevelopmentisenvisionedtobecomeavibrantmixed-useprojectincludingaresidentialandanofficesection,aretailstripalongthewater-sideandaboutiquehotel.
Our role
Theclientrequiredadviceontheproject’sdevelopmentstrategyaswellasanassessmentofthebusinesscaseforeachcomponent.
D1 Tower & Palazzo VersaceDubai – UAETheNationalBankofAbuDhabirequestedustocarryoutcommercialduediligencetoconsiderafinancepackageontwoassetsinCulturalVillage,D1TowerandPalazzoVersace.
Our role
Weundertookacomprehensivereviewofthehighendresidentialmarketonbehalfoftheclientandbenchmarkedcompetinghighendresidentialschemes.
Hotel Portfolio Review Dubai – UAE Theclientownedaportfolioofhotelsandrequiredanunderstandingonwhethertheassetswereperformingonparrelativetoitscompetitiveset,plusanoverallreviewofassetandhoteloperatorperformance.
Our role
Inspectionsandinterviewswereconductedtoidentifythehotel’sKPIs.Deliverablesincluded:propertySWOTassessments,portfolioreview,hotellifecycleassessmentandrecommendationsgoingforward.
Marina ZayedAbu Dhabi – UAEMarinaZayedwillbeaworld-class,mixed-usecommunity,featuringstate-of-the-artboatingandmarinafacilitiessituatedalongsidediverseresidential,retail,officeandhoteluses.
Our role
Developmentstrategyrecommendationswereprovidedaswellasaprofessionalopiniononthefinancialfeasibilityoftheproject.
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Pearl DubaiDubai – UAESituatedatthebaseofThePalmJumeirahonaprominentcircularsite,DubaiPearlwillconsistofofficetowers,highriseapartments,brandedresidences,sixhotelsandmall.
Our roleWewereinstructedtoprovidedetailedvaluationandconsultancyadviceonthevalueoftheland.Detailswereprovidedonimprovements,alongwithforecastsonpotentialsellingpricesfortheresidentialelements.
Project Aftaelqaat Salalah – OmanAmixed-useddevelopmentnearSalalahintheDhofarregionofOman.Theprojectincludedresidentialvillas,2five-starhotels,destinationspaandgolfcourse.
Our roleThehighestandbest-useoftheplotswereassessed.Fromthisadevelopmentstrategywasrecommendedthatincludedafeasibilitystatementfortheproject.
Mixed-use Jeddah – KSATheclientwaslookingtodevelopatractoflandlocatedintheheartofthecommercialdistrictofJeddahwhichwastoinclude:high-endretail,residential,office,hotelandservicedapartmentcomponents.
Our roleAfterassessingthestateoftherelevantrealestatesectorsandtheexpectedsynergiesbetweenthem,anumberofdevelopmentoptionswerepresentedtotheclient,whichtookintoconsiderationthesite’sdevelopmentregulationsandourmarketintelligence.
The Wave Muscat – Oman AuniquepublicandprivateventurebetweentheOmanGovernmentandtheclient.Thismixed-usecommunitycomprises:luxuryresidentialproperties,retail,dining,marinaandgolfcourse.
Our roleProposedcomponentswerereviewedandarepositioningofthehotelswassuggested,resultinginamorediversifiedhospitalityoffering.Themarketsegmentscoveredbytherespectivehotelsweredefinedandlessconflicting,whilstaroomcountreductionwasproposedenhancingprofitability.
Heart of Sharjah Sharjah – UAE LocatedonthewestsideofSharjahCreek,theprojectaimstolinkSharjah’sheritageareas,transformingitintoatouristandtradedestination,whilstinaccordancewiththeprinciplesofsustainabledevelopment.
Our roleWeprovidedmarketresearchandsectoranalysescovering:hospitality,retail,offices,residentialand“heritage”.Conceptdesignswerereviewedtakingintoaccount:unitnumbersandsizes,componentmix,benchmarkingandfinancialviability.
One BahrainManama – BahrainJumeirahwastooperatethepropertyandrequiredaduediligenceontheprojectowner.Theprojectincludedaluxurious50storeytower,withfurnishedandfreeholdapartments,skyvillas(withtheirownpools),marinaandadditionalswimmingpools.
Our roleTheduediligenceincludedasiteappraisal,financialstrengthoftheprojectownerandthereputationamongitslenders,evidenceoftitletothelandandotheritemsrelatedtodevelopmentrisk.
Al Jabal Resort, The Chedi Khorfakkan – UAEScheduledforcompletionin2015,thisfive-stardevelopmentislocatedonaprivatebayandfeaturesafortand100suites.Theresortwonthe‘GCCHospitalityandLeisureProjectoftheYear’atthe5thannualMiddleEastArchitectAward.
Our roleTheclientrequiredafull-fledgedfinancialfeasibilitystudyforthepurposeofsourcingasuitablelendingand/orequitypartner.
Yenkit Muscat – OmanLocated25kmfromMuscatthisprimecoastalsitewasoriginallyenvisionedasanintegratedupmarkethotelmixed-usedevelopmentfeaturing3hotels,residentialvillas,spa,golfcourseandclubhouse.
Our roleInadditiontoassessingtheoverallfinancialfeasibility,anidealfacilitymixforthehospitalityandleisurecomponentswererecommended.Moreover,premiumstheresidentialcomponentcouldderivefromthehospitalitybrandsandfacilitieswereestimated.
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330OfficesIn48
Countries
OverA Partnership ApproachKnightFrank’sfourdistinctivecomponentscompriseourglobalnetwork,ourindependence,andourcommercialandresidentialplatforms.Thesesetusapartfromthecompetition.
TogetherwithourUSalliancepartners,NewmarkGrubbKnightFrankwehavegrowntoagroupofover12,500propertyprofessionals,inmorethan330officesin48countries.
Beingapartnershipallowsustoputourclientsfirst,wefocusongivingthemthebestadviceandputtinglongtermrelationshipsaheadofshorttermwins.Trustandintegrityareeverything.
Workingwithprivateindividuals,developers,investors,banks,corporateoccupiersandpublicsectorbodiesweprovidearangeofagency,investmentandprofessionalconsultancyserviceswhicharesupportedbyourdedicatedmarketresearchteams.
Thecombinationofourpeople,researchandtechnologyhashelpedusgrowourenviabletrackrecordandthatiswhyclientscomebacktousfortheirpropertysolution.
THE AMERICAS
UK
AFRICA
EUROPE
MIDDLE EAST ASIA PACIFIC
THE AMERICAS99offices3countries
UK72offices1country
AFRICA23offices9countries
EUROPE80offices17countries
MIDDLE EAST4offices3countries
ASIA PACIFIC53offices12countries
Harmen De JongPartnerM [email protected]
Abu Dhabi O+97126353297DubaiO+97144512000
Bahrain O+97339553776
Saudi Arabia O+966530893297
Khawar KhanResearch ManagerM [email protected]
Arati TareConsultantM [email protected]
Stefan BurchPartnerM [email protected]
KnightFrankemploysprofessionalswhoareexpertsintheirrespectiverealestatesectors.Dependingonthenatureandscopeoftheassignment,therelevantexpertiseisbroughtintotheconsultingteam.
FurtherdetailsareavailableonourwebsiteatknightFrank.ae
KnightFrank.ae@KnightFrankUAEKnightFrankMiddleEast
Our people
Ali ManzoorManagerM [email protected]