Acquisition Due Diligence And Hotel Valuation

It is imperative for investors deciding to include a HOTEL IN their portfolio to know why they are doing so.  GNC  Hospitality can help make experienced, educated assumptions about future market conditions and implement a plan to deal with those ever-changing conditions.

GNC  Hospitality has over 30 years’ experience in helping investors in identifying an opportunity, formulating a plan for it, and then proceeding to evaluate the possibly of acquiring the hotel.

Management strategies that influence long-term investment management – and ultimately potential returns – are a critical part of any potential hotel or resort purchase decision and require thorough consideration and evaluation.

Independent investment analysis, research, and due diligence are core services offered by GNC HOSPITALITY’s experienced team, having acquired and disposed of numerous hotel investment properties throughout their respective careers.  Potential investors are encouraged to involve asset managers at the commencement of any due diligence process for assistance in the areas of:

  • Purchase and sale agreement negotiation
  • Operator selection and management contract negotiation
  • Franchise selection and agreement negotiation
  • Investment underwriting
  • Due diligence planning
  • Asset positioning/repositioning recommendations
  • Professional consultant retention (engineering, environmental, market, legal)
  • Capital programming
  • Executive committee member selection
  • Development of a master plan
  • Business plan evaluation
  • Preparation of financing memorandums
  • Accounting and financial system review
  • Preparation of closing statements

GNC  Hospitality realizes that a hotel is both a business and real estate investment and therefore needs to be scrutinized by those familiar with the hotel industry.

Markets will change – That is a given.

GNC  wants the buyer to understand both property and market dynamics BEFORE purchasing the hotel. Once a property has passed our rigorous screening process, GNC  can perform a preliminary property and market analysis to establish an initial bid price.

Due diligence of the targeted hotel is a must that is often overlooked by investors thinking they “know the business”.

GNC  Hospitality has vast experience in handling financial, marketing, engineering and environmental audits, just to name a few, that are needed to ensure you make a sound educated decision before purchasing a hotel