Once an owner decides to sell a hotel, many things need to be taken into consideration. The value of a hotel is measured predominantly by its earning power. But other parameters also impact the market price. These include the property location in light of preferred investment profiles. A hotel in a premium metropolitan location might bring a higher price than a hotel with identical earning power in a less prominent location.

For some properties, it can be advisable to develop a concept for increasing the hotel’s earning power. One example might be by outlining untapped potentials that exist on an operational level in light of changed market conditions. In some cases, the question might also be, is the current operator or brand still the best fit? These strategic parameters need to be addressed in order to best project reasonable cash flows. An appraisal carried out in alignment with proven industry valuation standards often serves as an objective negotiation basis regarding the fair market value.

Due to the right access to top-decisionmakers of investment companies, operators or financiers can bring the right partners to a project. Their trust in the team of SELECT together with smart negotiation build the foundation for win-win-situations and closing the transaction.

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In today‘s dynamic market, it is imperative to continually improve a hotel‘s market position regardless its brand. For existing hotels, questions worth asking include: are the number of rooms is still sufficient? Or is the property too big? Is the hotel still operating under the right brand? Where can we look for untapped potential? How can we tap it?

For example, the F&B division is oftentimes neglected in many hotels even though this area comprises quite a number of profit centers including costly back of house areas, such as kitchen, storage and spaces. F&B’s encompasses considerable earning potential. As one of the very few advisory firms on the market, the SELECT team specializes in making the hotel business legible for stakeholders outside of the industry. Besides establishing a high degree of transparency, the SELECT team develops tailor-made concepts that enables the hotel to generate additional cashflows, while creating attractive workplaces to draw the best teams, even when skilled human resources are scarce.

The SELECT team supports clients at an interdisciplinary level, providing bespoke guidance through the implementation process.

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And suddenly a hotel is without a leader. During crises and turnarounds, time is a crucial factor. Quickly capturing complex situations, outlining a systematic implementation scheme, taking appropriate measures, and also keeping in mind that one valuable resource of any hotel is its employees. All these are important success factors. SELECT’s approach enables our interim management teams to not only steer a hotel back to calmer waters, but also to build up and empower strong management practices that will ultimately lead operations into lasting stability. 

The philosophy of the SELECT team is to provide the crucial link between financial requirements and operational particularities to achieve long-term success.

The SELECT team relies on proven relationships with experienced industry professionals.

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