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Hotels, Hospitality and Leisure Capabilities and track record Adding value through the development process
Hotels, Hospitality and LeisureCapabilities and track recordAdding value through the development process
Hotels, Hospitality and Leisure | Capabilities and Track Record3
Cavendish Maxwell2205 Marina PlazaDubai MarinaP.O. Box 118624DubaiUnited Arab Emirates
Tel: +971 4 453 9525
Hotels, Hospitality and Leisure
Track record, expertise and capability
The following document demonstrates our enviable track record of providing our hospitality clients with the ammunition to add significant value to their asset portfolios.
All projects have been undertaken by our team of senior industry professionals, who have amassed more than 3 decades of work experience within the sector.
Our output has ensured that the region’s leading developers, investors, hotel owners, government departments and financial institutions have been able to maximize the performance of their development assets and ultimately:
• Increase shareholder value;• Raise investment returns;• Shorten payback periods; and• Formulate an exit strategy.
We have advised clients on projects from small-scale budget accommodation through to five-star, world-class hotels, resorts, golf courses and their associated leisure components.
We offer the full range of advisory services under 4 key practice areas as follows:
• Feasibility and Viability• Valuation Consultancy and Advisory• Operator Search, Selection and Contract Negotiation• Asset Management and Owner Representation
Additionally, we are able to offer further added value advice in areas which include, but are not limited to the following:
• Expert Witness representation• Ongoing development consultancy and advice• Highest and best-use engagements• Acquisition and disposal brokerage• Site selection and due diligence
We appreciate the support of our clients in undertaking this work and we hope that we can provide you with the comfort and confidence to engage with us to allow you to realise your long term hospitality goals.
Yours sincerely
Charles Bott Head of Hotels, Hospitality and Leisure For and on behalf of Cavendish Maxwell
Charles Bott
Title: Department HeadHotel and Finance Experience: 31 years
Charles Bott is a well-connected hotel professional with more than 3 decades of relevant industry experience. He has been resident in the Middle East for almost 16 years and joined Cavendish Maxwell in August 2015.
Charles has spent all his working life in senior positions within the hotel and finance sectors. Initially, his career spanned UK hotel operations, public sector finance, private practice with one of the ‘Big 4’ firms and hotel sales and marketing in the UK and the Middle East.
For the past 14+ years, he has led advisory teams on over 300 hospitality engagements in every country in the GCC, as well as in Egypt, Kenya, Sudan, Mozambique, Libya and other parts of MENA and West Africa.
He has also acted as an Expert Witness in ICC Arbitration Cases within the DIFC courts facility in Dubai, where he is examined and cross-examined under oath.
He has been instructed by all the leading developers, owners, hotel investors and government departments on some of the most prestigious and high profile hospitality projects in the region.
Introduction
Hotels, Hospitality and Leisure | Capabilities and Track Record4
Feasibility and viability
Jumeirah Lakes Towers, DubaiHighest and best-use study
The team provided a highest and best-use study on a prime development plot in JLT. The scope included:
• Demand and supply analysis.
• Competitive set benchmarking.
• Brand gap analysis.
• 12 development options including a mix of 5-star hotel and hotel apartments, residential and retail schemes were explored, in addition to a financial analysis and a plot valuation, which concluded with a recommended investment strategy.
• The engagement lead to a successful operator selection service and a signed hotel management agreement.
Jumeirah Lakes Towers, DubaiMarket and financial feasibility study
• Prime plot within the most prominent commercial district of Dubai and including hospitality elements.
• We were retained on this long-term mandate by a developer who represented the delivery partner in a proposed joint venture structure.
• Cavendish Maxwell’s role was to provide market and financial due diligence and to broker negotiations in the Joint Ventur agreement.
Palm Jumeirah Plot, DubaiMarket and financial feasibility study • Prime plot within prestigious residential and hospitality district of Dubai covering approximately 11,148 sq m and a BUA of 60,387 sq m.
• Cavendish Maxwell were appointed to provide market and financial feasibility and valuation advice and to engage with operators to explore a hotel apartment concept.
• Cavendish Maxwell provided recommendations that mirrored market needs and continued to work with the Client to identify an international operator.
Date: 2014
Date: 2014
Date: 2014
Hotels, Hospitality and Leisure | Capabilities and Track Record5
Burj Khalifa, DubaiPre-feasibility study
• The team provided the following services:
• Pre-feasibility study for the planning, development, launch and operation of the world’s first Armani Hotel inside Burj Khalifa - the world’s tallest building - on behalf of Emaar Properties.
Dubai Festival City, DubaiMarket and financial feasibility study
• Market and financial feasibility study and Business Plan for a five-star hotel within Dubai Festival City, on behalf of Al Futtaim Investments.
Two Resorts, Abu DhabiBusiness planning and market study
• Business plan and market opportunity study for a proposed desert resort and island resort in the emirate of Abu Dhabi, on behalf of Abu Dhabi National Hotels.
Date: 2001
Date: 2004
Date: 2004
Feasibility and viability
Hotels, Hospitality and Leisure | Capabilities and Track Record6
Feasibility and viability
Emirates Golf Club, Dubai, UAEMarket and financial feasibility study
The team provided a feasibility study on a prime development plot within the golf course grounds. The scope included:
• Strategic redevelopment study, investment advice and business plan development for the overhaul of Emirates Golf Club on behalf of Dubai Golf.
Yas Island, Abu Dhabi, UAEOngoing development advice
• The client is the Asset Manager for all government- owned assets and developments on Yas Island. Their remit is also to initiate and implement the development of further components, one of which is Zone S, initially slated for the development of a sports and leisure/entertainment hub. In the first phase of this assignment, the client required a market analysis, a highest and best-use study, international benchmarking for best practices and an options analysis.
• The team were commissioned to continue into Phase 2 - pre-concept master planning - on this substantial project.
Heart Of Sharjah, UAEMarket and financial feasibility study • The team were asked to advise on the Heart of Sharjah project.
• Heart of Sharjah is focused on completing the economic structure in accordance with the principles of sustainable development and environmental principles, in line with the latest international standards.
• In view of its ambitious strategies, SHUROOQ (the investment and development arm of the Government of Sharjah) sought – through its landmark Heart of Sharjah project – to develop ancient houses and to transform these into hotels, restaurants, art galleries and markets, while preserving the local historical character of the emirate.
Date: 2004
Date: 2014
Date: 2014
Hotels, Hospitality and Leisure | Capabilities and Track Record7
Jumeirah Lakes Towers, Dubai, UAEOperator selection
Following on from a market and financial feasibility study, the client required an Operator Search and Selection service on the development plot, which resulted in successful commercial terms being drafted. In addition, we:
• Conducted a detailed brand gap analysis.• Selected an initial list of suitable operators.• Initiated a bidding process.• Coordinated brand presentations of interested parties.• Established the best commercial fit and overall suitability.• Devised a shortlist of preferred operators.• Invited the selected parties to submit draft commercial terms.
Yas Island, Abu Dhabi, UAEOperator selection
The client commissioned the team to select a reputable international hotel operator for the Royal Apartments in Abu Dhabi. A management agreement between Rotana and the client was successfully negotiated – with our guidance – as a result of the recommendations made.
Dubai Marina, UAEOperator selection Following on from a market and financial feasibility study, the client asked the team to provide an Operator Search and Selection service.
The project included 350 luxury guest rooms, a banqueting hall, meeting rooms, restaurants, a spa and leisure facilities. The concept design for the proposed project was revised by the client, which was then reviewed and tested, subject to further studies.
Operator search, selection and negotiation
Date: 2014
Date: 2012
Date: 2006
Hotels, Hospitality and Leisure | Capabilities and Track Record8
Dubai Marina, UAEOperator selection
The team were instructed on behalf of a client who was in the process of developing a 5-star luxury hotel project adjacent to the Dubai Marina and JBR developments.
The project includes 350 luxury guest rooms, a banqueting hall, meeting rooms, restaurants, a spa and leisure facilities. The concept design for the proposed project was revised by the client and tested, prior to the search for an international hotel operator, which is currently ongoing.
Abu Dhabi Corniche, UAEOperator selection
The Client’s intention was to develop a mixed-used project near the Hilton Hotel on the Corniche. The team recommended the optimum component mix, including hotels, serviced apartments, residential lofts, serviced and non-serviced offices, a beach club and retail space.
The team were retained to source and search for reputable operators for the project, select the preferred operator, initiate negotiations and continue to provide development advisory recommendations.
Dubai Investments Park, UAEOperator contract negotiation review
Based on a revised development plan for a proposed 3-star business hotel project in Dubai Investment Park, the Client requested the team to update project P&Ls, review the new commercial terms proposed by the agreed hotel operator (Millennium Hotels & Resorts), suggest prudent commercial terms (base and incentive management fees) for the new proposed hotel apartments concept.
Date: 2006
Date: 2008
Date: 2012
Operator search, selection and negotiation
Hotels, Hospitality and Leisure | Capabilities and Track Record9
Dubai and Abu Dhabi, UAEPortfolio of hotels
We were instructed to provide the Market Value of a portfolio of hotels for acquisition purposes, which included Upscale, Upper Upscale and luxury assets as follows:
• ADR and occupancy penetration analysis.• Sensitivity analysis conducted on major inputs.• Full P&L review in terms of POR and PAR against competitive benchmarks.• Study of existing Management Contracts.• Production of fully compliant RICS and IVS reports.
Dubai, Abu Dhabi, Fujairah, SeychellesPortfolio of hotels
• Cavendish Maxwell were responsible for valuing a portfolio of under-construction and completed hotels in Dubai, Abu Dhabi, Fujairah and Seychelles.
• The portfolio included a range of asset classes.
• The valuation was used for accounting purposes and involved a variety of techniques, plus a sensitivity analysis to arrive at the valuation.
• As part of the assignment, a detailed commentary and an analysis of the operators’ projections were required.
Dubai and Abu Dhabi, UAE
• Cavendish Maxwell were instructed to provide the Fair Market Value of an under-construction hotel in addition to a Fair Market Value of a development plot zoned for hospitality use in Abu Dhabi.
• As part of this study, we researched ADRs and occupancy and we analysed competitive set data in the surrounding areas to establish a fair maintainable operating profit using a discounted cash flow method.
• The valuation involved the application of inputs to residual valuations under RICS Professional Standards and International Valuation Standards statement 233 ‘Investment under Construction’. Our Fair Market Value was then used for accounting purposes.
Date: 2014
Date: 2014
Date: 2015
Valuation consultancy and advisory
Hotels, Hospitality and Leisure | Capabilities and Track Record10
Dubai, UAEHotel portfolio
• Cavendish Maxwell were responsible for valuing 8 operational hotels held under long-term lease agreements.
• As part of the assignment, a detailed commentary and an analysis of the operators’ projections were required and, in turn, an analysis of the current rental schedules was undertaken.
• Detailed analysis of the F&B revenues and amenities were cross- checked against Cavendish Maxwell’s reputable internal database.
Dubai, Fairmont The Palm, UAE
• Cavendish Maxwell was instructed to provide the Market Value of a newly established hotel.
• As part of this study, we researched ADRs and occupancy and we analysed competitive set data in the surrounding areas in order to establish a fair maintainable operating profit, using a discounted cash flow.
• The valuation involved gathering recent local market transactions and analysing this data using Cavendish Maxwell’s internal database.
• Our Market Value exercise was used for secured lending.
Dubai Investments Park, UAE
• Cavendish Maxwell was responsible for valuing a number of leasehold plots located within Dubai Investments Park, which have been zoned for hospitality use.
• The instruction included running residual valuation financial models - based on hypothetical schemes - in addition to a sensitivity analysis.
• The valuations were used for budgeting purposes.
Date: 2013
Date: 2015
Date: 2015
Valuation consultancy and advisory
Hotels, Hospitality and Leisure | Capabilities and Track Record11
Fujairah, UAE
• Cavendish Maxwell were responsible for valuing this under-construction, five-star hotel development. A full market analysis was undertaken in terms of current and future pipeline supply. Rates were benchmarked against Cavendish Maxwell’s in-house hotel database and STR Global.
• Upon completion, the hotel will comprise 182 rooms.
• The F&B outlets comprise 3 restaurants, bars and lounges.
• The purpose of the valuation was for secured lending purposes.
Dubai, UAEPortfolio of hotels
• Cavendish Maxwell were instructed to carry out a Market Value for the operating easyHotel in Jebel Ali and a development plot in Al Garhoud.
• The easyHotel has been a fully operating trading entity since 2010. The hotel occupies a location in Jebel Ali Free Zone and offers one food and beverage outlet and a total of 216 guest bedrooms. • The development plot has easy access off Sheikh Zayed Road (E11), via 5th street.
• The valuation was used for internal purposes.
Dubai, UAEPortfolio of hotels
• Cavendish Maxwell were responsible for valuing a portfolio of operating hotels in Dubai.
• The valuation was used for accounting purposes and involved a variety of techniques and sensitivity analyses to derive a Market Value.
• As part of the assignment, a detailed commentary and an analysis of the operators’ projections was required.
Date: 2014
Date: 2013
Valuation consultancy and advisory
Date: 2014
Hotels, Hospitality and Leisure | Capabilities and Track Record12
Dubai, UAEAsset management
The team lead a full operational review of an established hotel in Al Barsha as follows:
• A competitor performance review.• Mystery visits.• Management interviews.• A detailed cost analysis.• A management analysis.• Recommendation profiling.• DM regulations compliance checks.• A detailed SWOT analysis.• Recommendations in order to grow revenue by 17% and ADR by 27%.• Recommendations to allow a 39% increase in food and beverage revenue.
Jeddah, Kingdom of Saudi ArabiaAsset Management
We were asked to undertake the asset management of the Crowne Plaza hotel in Jeddah in the Kingdom of Saudi Arabia. To achieve this, we:
• Performed a detailed inspection of the property.• Reviewed the hotel management contract.• Reviewed the technical services agreement.• Analysed the CAPEX programme.• Conducted a full review of the P&L statements.• Analysed the connectivity between the P&L and the cash flow.• Reviewed the budgets for the following financial year.• Inspected the Balance Sheet.• Made recommendations as to the negotiation points within the HMA.• Set budgeted targets for the operator.
Dubai, UAEAsset management
• The team were asked to participate in a ‘think tank’ workshop for a mega project in Dubai. We were asked to review the existing concept master plan and provide expert input into optimising the business case of the various elements, thereby increasing inter- linkages and synergies and identifying potential operational issues and proposing mitigation strategies.
• The 3-day workshop required a visionary, creative and forward- thinking approach and was attended by VIPs from Dubai Municipality and a major Dubai developer. Industry leaders were also invited to participate, as well as a significant presence from the media.
Date: 2010
Date: 2008
Date: 2012
Asset management and owner representation
Hotels, Hospitality and Leisure | Capabilities and Track Record13
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Cavendish Maxwell clients
15Hotels, Hospitality and Leisure | Capabilities and Track Record
Cavendish Maxwell clients
Dan Harrison BSc (Hons) MRICSAssociate Hotels, Hospitality and LeisureM: +971 56 759 1930 E: [email protected]
Charles Bott Head of Hotels, Hospitality and Leisure
M: +971 50 617 7859 E: [email protected]
PROPERTY SERVICESMIDDLE EAST & AFRICA
Commercial Valuation • Development Advisory and Real Estate ResearchResidential Valuation • Machinery and Business Assets Investment and Commercial Agency • Project and Building Consultancy
Also contact us for:
Dubai office
2205 Marina PlazaDubai MarinaP.O. Box 118624DubaiUnited Arab Emirates
T: +971 4 453 9525 E: [email protected]
Abu Dhabi office
1006 Corniche Bakery BuildingAl Firdous StreetTourist Club AreaAbu DhabiUnited Arab Emirates
T: +971 4 453 9525 E: [email protected]
CavendishMaxwell.com
