Hotels and other lodging businesses are among the most complex types of investments. We believe whether you are placing debt, investing equity or entering into a franchise or management relationship, understanding the underlying dynamics of supply, demand and pricing is critical to making informed decisions and affects the success of investors, lenders, operators and hotel companies.
Nexus Hospitality specializes in under-performing assets, and our lodging services include:
Site analysis and selection
Our specialists conduct inspections of development sites to assess location attributes including access, visibility, proximity to demand generators and perceived strengths and weaknesses relative to other competitive hotel facilities and locations.
We define and evaluate the local market area to assess market conditions and to identify factors that may positively or negatively influence future demand trends and usage of a hotel’s accommodations. Our professionals assemble and analyze key economic and demographic data pertaining to the overall area to evaluate the present economic climate and to estimate the future growth potential of lodging demand.
Our specialists develop a census of competitive lodging facilities, including the type, number and quality of guest rooms, meeting/banquet space, ancillary amenities and other facility considerations.
We identify proposed hotel developments and changes to the existing competitive room supply.
Our lodging specialists estimate the growth rates for lodging demand by demand segment, based on the factors studied in the market analysis that may affect future room demand, and they estimate the potential market penetration of this demand by a particular hotel.
Brand and operator selection assistance
We provide assistance in the solicitation and evaluation of brand affiliations for a given location, the selection of an operator for management and negotiation of agreements.
Our professionals analyze a facility’s programming, including number and mix of guest rooms, meeting space, food and beverage outlets, and amenities to position a property.
We assess a property’s existing or contemplated pricing strategies and identify potential changes to market positioning.
Our teams analyze revenues and expenses including: occupancy and average daily room rate; other departmental revenues and expenses; administrative and general expenses; marketing costs; energy and property maintenance expenditures; fixed operating costs; construction and development costs; expected ongoing capital expenditures; cash flow; and potential returns.