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HOTEL A (50) City, St
Asset Manager: ___________
2006F Occ / ADR / RevPAR: 2006F NCF $ (%): 2006F EBITDA $ (%): Opened: Rooms (suites): Floors / Bays: 2005 ---7 Floors 190,000 sf total; Indoor: 69,447 sf, incl. 3 ballrooms (Ballroom 1: 24,644 sf, Ballroom 2: 14,168 sf, Ballroom 3: 3,402 sf); Outdoor: over 100K sf in seven themed function areas. ------Fee Simple 10 acres Resort $200 million / 5.08% / Maturity Date: -----Term Five years n/a HOTEL Brand Name N/A
Long Term Hold
Meeting Space (per room):
Acquisition Date: Acquisition Price (per room): Property Rights: Acreage (% Improved): Location: Debt: Exhibit ‘E’ Provision: Manager (Franchisor): Alternate Uses:
eXceed Asset Management
and events that shaped the State's cultural heritage. The property needs a significant upgrade to the landscaping package and there is an opportunity for us to add time share product to this development. None. Risks. introducing the union potentially to this market. Jobs. the HOTEL A Resort and Spa (the “Resort”) enjoys an ideal setting on 250 picturesque acres in City. There will be a need to redo the rooms in 2009.hole golf course. which limits the property’s upside as there is little room for growth on the group side of the demand equation. which features upscale residences. providing an additional source of growth. The ---. ST. • • • eXceed Asset Management CONFIDENTIAL Page 2 . a ---. Even the battered manufacturing base is showing signs of a revival. Other positive developments include a turnaround in information employment and a stronger pace of hiring in office-intensive industries. There are development opportunities that we will explore with time share and spa in 2008 and 2009. Recently. ---.Strategic Plan 2007 HOTEL A • • Executive Summary • Ground Lease. it is likely that the Parent Company will shift this business to another property.square feet of indoor and outdoor meeting space and ---. four-star Resort is part of the ---. ST”) economy is booming. spa and possibly meeting space over the next few years. the Competition Hotel in downtown City agreed to card check neutrality in order to gain the development rights for the convention hotel. We will also take a long term view on analyzing the need for meeting space to make the property less vulnerable to supply additions and downturns in the market. The first is that the hotel is somewhat dependent on the PCVO business provided by the Parent Company. As part of a "Sense of Place" theme. income. Opened in January 2005. St (“City. The property has risks associated with the potential closure of the pool to fix the leaks in 2009 and has capacity issues with the pool and spa areas that limit the properties growth and guest satisfaction. The Resort offers premium guestroom accommodations and resort facilities including a ----. Asset Positioning. The property also has limited outdoor function space and a weaker meeting space to rooms ratio than its primary competition. the resort pays tribute to the people. Market Outlook. The property is new and in very good condition. landscape. and population are all expanding at a rapid clip.square foot spa.swimming pools. Recommendation. With the timeshare units at the property currently sold out.acre master planned Luxury community. We will also need to address the pool. The property has potential to improve the leisure transient segments of its business to drive profit. There are several risks associated with this property. The City. Capital Project Plan. This is an extraordinary asset in a strong market and should be considered a long term hold.unit. shopping and restaurants.
St resort market No new major resort supply planned for development in the foreseeable future Market exhibited strong occupancy growth in 2006. a premier resort destination for group and leisure travelers • Age (2 years) of resort – no functional obsolescence issues • Excellent meeting space platform • Hotel Brand & Parent Company management • Strong national and international airlift • Despite seasonal climate. including over ---.acres of fee simple real estate in the heart of City. restaurant. with associated room night. SWOT Analysis STRENGTHS • ---. feasibility) Management Agreement terminable upon sale starting in 2013 Management Agreement provides for Owner to charge an asset management fee of 0. retail) • PCVO (timeshare) and residential community provides incremental demand for resort (rooms. St viewed as a significant opportunity by labor unions. golf.room Competition Hotel B Downtown in late---Nearby City with Large Tourist Attraction Potential phasing out of PCVO-related room night demand City. F&B and golf demand (pending zoning. particularly in ADR relative to comp set Timeshare/residential development on-site.Strategic Plan 2007 HOTEL A THREATS • • • • • Construction of new ---. St. year-round recreational opportunities in market.golf courses Excellent support amenities (entertainment. F&B. ADR growth will be the focus for 2007-2009 Resort still in ramp-up mode.5% of Total Revenues Large Sporting Event hosted by City in --- eXceed Asset Management CONFIDENTIAL Page 3 .sf ballroom at Competition Hotel A Opening of ---. spa) • Strong and diverse local economy WEAKNESSES • • Spa & pool potentially undersized Lodging market seasonality OPPORTUNITIES • • • • • • • • Capitalize on what is anticipated to be a strong 2-3 year growth period for the City.
2 bars and a spa. this property has been closed since May of 2005 and is going through major reconstruction and renovation. getting old despite new spa Wins on leisure transient and excellent relationship with incentive travel groups Great history. $200M development will include 25 luxury condos. market orientation. lack of resort amenities. $70M repositioning will be created around it's historic past of the '50's with an updated modern and minimalist styling. located near HOTEL D. HOTEL K --- --- --- --- eXceed Asset Management CONFIDENTIAL Page 4 .Strategic Plan 2007 HOTEL A Lodging Market – Competitive Landscape Competitive Supply Year Open --------------Meeting Space Total Per (Indoor) Room ----------------------------- Property HOTEL A HOTEL B HOTEL C HOTEL D HOTEL E HOTEL F HOTEL G Rank 5 3 1 4 6 2 7 Rooms --------------- Better / Worse than Host Hotel Meeting Rooms Space Location Amenities Comments Great meeting space and strong name recognition Premium luxury product in the market Best meeting space platform and superior pool and spa experience Good reputation. a restaurant. St and will compete with the Hotel L and the new Hotel M opening in 2009. This hotel is located in Downtown City. planning major reinvention that would improve its competitiveness significantly Changes in Supply Property HOTEL H HOTEL I HOTEL J Opening Date ------Rooms ------Meeting Space Per Total Room ------------Comments Formerly the Hotel H1 Resort. We do not believe this hotel would represent a direct competitive threat to the Property due to its location. and pricing structure.
Strategic Plan 2007 HOTEL A Guestroom Lobby Suite A Suite B eXceed Asset Management CONFIDENTIAL Page 5 .
Strategic Plan 2007 HOTEL A Ballroom1 Ballroom 2 Pavilion Boardroom eXceed Asset Management CONFIDENTIAL Page 6 .
Strategic Plan 2007 HOTEL A Dining Room Lounge Café Bar eXceed Asset Management CONFIDENTIAL Page 7 .
Strategic Plan 2007 HOTEL A Adult Pool Spa Golf Club Pools eXceed Asset Management CONFIDENTIAL Page 8 .
guestroom lighting retrofit an opportunity. This was NOT constructed to support additional levels . suites have a bar that is constructed with a laminate top and low grade cabinet – upgrade during redo Meeting Space Very good condition Carpet in pre-function areas and Ballroom 2 showing some wear. windows and caulk joints appear to be in good condition Excellent Overall the central plant is in great condition and all computer systems are working normally.Strategic Plan 2007 HOTEL A Capital Investment Strategy Capital Investment Rooms Very good condition 4-fixture baths. digital thermostats recently installed. thresholds/door sweeps needed under entry and connecting doors to solve noise transmission issue. Signs of roof leaks in Ballroom 2. Property has an opportunity to capture free cooling if they add a plate and frame heat exchanger. Façade: Elevators: HVAC: eXceed Asset Management CONFIDENTIAL Page 9 . etc.designed only to support the current tent load with occupants Public Space Very good condition Potential opportunity to activate and increase outdoor seating/gathering places (fire pits.) F&B Very good condition Plumbing: Life Safety: Generator: Excellent condition Excellent condition Excellent condition Mechanical & Structural Systems Roof: Upper roof has a few blisters that have been repaired. Temporary pavilion atop Ballroom 2 is used approx 6 months/yr ($300K in rent). The repairs appear to be in good condition and the roof has a warranty that the property has on record.
particularly with the golf clubhouse restaurant. which would require re-zoning or special permits. but may be in the future.hotel units could be developed on the site. • Potential energy conservation initiatives include: • Lighting retrofit – incandescent lighting throughout the Hotel. Incremental resort revenue has not been projected in our analysis. ROI / Alternate Use Opportunities • The Property has not been fully developed according to current zoning guidelines. PCVO would also build a parking garage to replace the lost parking. Famous Person). and particularly would need sponsorship for funding. They also believe that the existing outdoor function areas need to be expanded and enhanced to compete in the market. particularly in guestrooms (90W bulbs) – opportunity to convert to 22W compact fluorescent bulbs. Keeping PCVO focused on this development is important – there is potential that they might be looking. • F&B outlet leasing is not currently an opportunity.Strategic Plan 2007 HOTEL A We will evaluate these needs depending on our success with attracting our fair share of leisure transient. Any incremental timeshare/residential development would require a separate pool and the relocation of the two existing tennis courts. The Fine Dining Restaurant (specialty restaurant) operating results will need to be monitored. • Spa expansion – Based on the anticipated level of demand from the Hotel and the existing PCVO timeshare units. • Resort management believes there is a need for a new ballroom and a new feature outdoor function space.g. Parent Company Vacation Ownership (PCVO) has valued the empty parcel and a portion of the parking lot on which additional development of PCVO timeshares would be built at about $4M. eXceed Asset Management CONFIDENTIAL Page 10 . a spa expansion should be considered. Would need a top name (e. The need to replace the PCVO customer may ultimately require us to group up more at this hotel. Timing would be of the essence. It is estimated that an additional --. which would require more meeting space. It is likely that the highest & best use scenario would be to develop residential/timeshare units. Need to ensure that the property is adequately tracking operating data in SpaSoft. as they will be completing the final phase of the construction of the current development later this year. but financial arrangement would be key in determining opportunity. • Installation of a plate and frame heat exchanger • Laundry facility – potential to install an ozone or water recycling system • Golf teaching facility – currently no competitive clubs have a top-notch teaching school.
The property’s ASI results were ---% in 2006 versus a brand standard of ---%. Associate Satisfaction. The hotel is projecting to achieve a ----% RevPAR Index in 2006. They are aiming for a --. The property has improved its meeting planner scores and is well above other convention resort hotels and the brand. Our current targeted optimal group room nights is ---. including capital investment.for 2008 with a crossover at year end target of ---. We should also look for ways to improve volume for the dinner period. the property has been number 1 in RevPar growth for each of the last 3 years showing that the property is still ramping up and is gaining on the competition.Strategic Plan 2007 HOTEL A in the comp set. The optimal goal is to shift the mix to ---% transient and increase group to a ---% mix by eliminating PCVO rooms as they are eliminated by Parent Company. Priority Focus Areas (Profit Impact) • • • Item 1: Improve sales and marketing other cost to $--.PAR. The score is up from ---% in 2005 versus a brand standard of ---%. The hotel is still under its fair share and should be at or above 100% in 2007 by increasing its leisure transient business and filling in need periods with more group business. Operations Strategy • Guest Satisfaction. This mix is not likely to occur without additional meeting space but is the optimal mix for this property. The property is 6 of 6 in the RevPar Index for 2006 and 2005 using the trailing 12 months activity in the September report. They are primarily concerned with the price value relationship and the guest arrival experience and are putting measures in place.goal by focusing on their 5 key drivers. Item 2: Improve productivity in the restaurants to $---/Hour worked by increasing menu pricing. The property exceeds every area of measure but is still focused on improving their scores while driving the group rate and catering contribution.room nights for 2007 and ---. • RevPar Index Target. closing slow restaurants and monitoring hours more aggressively.for 2009. The property currently has a business mix of ---% group. up 4 pts from previous year. Therefore. The property is disadvantaged to several properties with less of their business coming from the higher rated transient business than many eXceed Asset Management CONFIDENTIAL Page 11 . If that strategy is not achievable because of new supply or other factors. and having weaker meeting facilities than the other large group houses in the market. However. • Optimal Mix / Group Crossover Targets. we will look to slowly replace the PCVO with leisure transient. Trend the property’s GSI score is ---% which is well above brand and convention hotels. Meeting Planner Satisfaction. ---% transient and ---% PCVO. to address these issues. we would look for an expanded meeting space platform. Item 3: Increase leisure transient room night production to replace PCVO customer and drive rates as the group rate has less upside in 2007 based on the business on the books YTD. The hotel is 3 of 6 in occupancy and 6 of 6 in ADR index.
Strategic Plan 2007 HOTEL A • PCVO Various Agreements. An employee expense allocation agreement exists between the Resort and the existing PCVO timeshares. it is replaced primarily by leisure transient and group business. eXceed Asset Management CONFIDENTIAL Page 12 . it is assumed that as the relative level of demand for this segment diminishes. ---K room nights from Parent Company Vacation Ownership (PCVO) activities at an ADR of $----. In 2006. The Resort has recently deployed sales resources to focus on future leisure transient opportunities. the Hotel budgeted approximately ---K room nights at an ADR of $----. controller. Our analysis assumes that this agreement remains in place. The agreement is renewed annually subject to mutual agreement between the Resort and PCVO. For 2006. Costs allocated include: 100% of wages & benefits of Direct Employees and 10% of base salary 10% of benefits load for the GM. the Resort generated approx. Chief Engineer and F&B Director. For the purposes of this pro forma. PCVO effectively reimburses the Resort monthly for services provided by Resort employees for PCVO.
Strategic Plan 2007 HOTEL A eXceed Asset Management CONFIDENTIAL Page 13 .
Strategic Plan 2007 HOTEL A Master Capital: Base Fee: Primary IMF: Appendix I Management Team Updated 1/1/07 General Manager: DOF: DOM: F&B Director: DOE: Manager 1 (555) 555-5555 Manager1@HotelA. 4% (increases to 5% in 2011) Performance Termination: Escrow % / Type: eXceed Asset Management CONFIDENTIAL Page 14 .P. ------None / 5 years ---Closing Date: Loan Amount (Interest Rate): Amortization / Payment Term: Balloon Payment (Due Date): November 2003 N/A ------Two terms of five years each Owner has option to renew as long as Hotel is compliant with Operating Standards 2013 or beyond (with sale or transfer of the Hotel) – Owner must provide 70-day notice which can be changed or rescinded up to 5 days prior to stated termination date.com Manager3 (555) 555-5555 Manager3@HotelA. Additional IMF: Expansion IMF: Owner’s Priority: Territorial Rights: Right of First Refusal: Notes: Major Hotel Agreements Management Agreement Operator: Effective Date: Amendment Date: Initial Term: Renewal Date: Renewal Terms: Renewal Option: Termination Date: Brand Operator Incorporated Ground Lease: N/A Mortgage Debt Lender: Lending Company. excluding one full-service Hotel Brand hotel of less than ---.com N/A ----% of annual Gross Operating Revenue ----% of Incentive Income (Operating Income minus Owner’s Minimum Return ($---.rooms outside of a seven-mile radius of the Hotel.million + ----% of any Hotel Brandapproved Capital Improvements)) See Exhibit Q of Second Amendment for IMF Calculation. Owner can terminate (after the first five years) if Owner’s Return exceeds Operating Income for two consecutive years and RevPAR is one of the three highest in the comp set.com Manager 2 (555) 555-5555 Manager2@HotelA.com Manager4 (555) 555-5555 Manager4@HotelA. L.com Manager 5 (555) 555-5555 Manager5@HotelA. N/A N/A ----% of any Hotel Brand-approved Capital Improvements -----mile radius for 17 years form the opening date.
Strategic Plan 2007 HOTEL A Appendix II – Historical Operating Performance eXceed Asset Management CONFIDENTIAL Page 15 .
Strategic Plan 2007 HOTEL A eXceed Asset Management CONFIDENTIAL Page 16 .
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