Due Diligence

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How we can help
Investment risk reduced
Confirm development plan & time line
Ensure hotel management contract benefits the owner
Confirm demand and revenues
Assess structure of finance offered to owner
Confirm ability of owner to make repayments
Bank obtains insights into complexity of hospitality investment
Confirm accuracy of cost estimates
Ensure design aligned with international standards
The hospitality industry faces many development, operational and financing challenges.
These are caused by:

Inexperienced professional teams, development teams and construction companies

70% - 80% of owners/developers are first time hotel developers

Poor project planning

Ineffective project management

Prior financial structuring not undertaken

Failure to meet international standards (quality, safety and security, design etc.)

Inefficient designs

Poor feasibility analysis

Unrealistic projections and incorrect performance ratios

Market research not undertaken to inform concept

No financial and operational benchmarking

No operator selection or review of operator contract

Management contract that does not balance risk between owner and operator

Lack of sensitivity analysis

Ineffective structuring of debt finance

Financing not mirroring operational performance and cash flows