Dimond Hotel Consulting Group

Advisory and actionable consulting services to leading hotel companies, independent hotels, lending institutions, trustees, law firms and municipalities.

  • Hotel Consulting
    • Acquisition Due Diligence
    • Hotel Impact and Infringement Analysis
    • Hotel Market and Feasibility Studies
    • Make Your Hotel Better Than Before
  • Litigation Support
  • Two Step Receivership Selection Process
  • Client List
  • About Us
  • On Becoming a Hotel Consultant
  • Contact Us

A CLIENT’S STAFF IS LEERY & SUSPICIOUS WHEN A CONSULTANT SHOWS UP

A client’s staff is usually suspicious when a consultant arrives and calls for a meeting. Some staff members been known to undermine the consultant as they are leery, dubious and threatened.  That first staff gathering determines the working relationship between consultant and staff. Asking the right type of questions during that initial contact with a confused and skeptical staff is critical. The door to candor must be immediately opened. One way is for the consultant to ask contemplative questions. Involving the staff to take responsibility in needed improvements encourages them to seize ownership and feel part of the solution. Here are some sample introspective questions.

______________________________________________________

  1. What’s the culture here?

Culture is just a word that means “How things get done around here”

  1. What are your hotel’s strengths?

Where are you better than  your competition?

  1. What are the hotel’s opportunities – any weaknesses?

If your owner could write a check to improve things where would you spend it?

  1. What besides capital is holding us back from improving them?

Name an obstacle standing in your way?  Is it Operations? Marketing? Human Resources? Product Quality?

  1. Who has experience with a hotel turnaround?

We often hear from client’s staff – “Here we go again”. So, who’s been through this before? What happened? What worked – What did not?

  1. Why am I (consultant) here?

Has the client shared the reason(s) why a consultant was engaged? Am I the one who will  fix things?

  1. What will success look like?

When we accomplish what needs to be done what will it look like? How will we know we accomplished what we set out to do?

Overlooked Driver of Hotel Development

Guest Demand Not the Only Thing Driving Hotel Development

Capital that has historically targeted commercial real estate has “discovered” that hotels often offer higher yields than other genres in this sector. Hotel development and acquisitions has gotten the attention of Institutional investors. This is not only true in the U S but also in the UK. Retail development continues to slide as brands are closing stores to shore up earnings and deal with on-line shopping. While the determination of guest demand is still the major factor in hotel market studies it may not be the initial consideration by the investor especially new comers to hotel development.

Thinking About Becoming a Hotel Consultant?

The Changing Role of The Hospitality Consultant

How Hospitality Consulting Has Changed Over the Past 25 Years

Things really started to change in hotel consulting in the mid eighties. The catalyst for change was the International Society of Hospitality Consultants (ISHC) –   www.ishc.com  . While its co-founders were primarily “traditional” hotel consultants there were a few founding members with disciplines other than market and feasibility studies.

As the industry continued to grow and diversify, the demands from the client began to require consultants with additional skills.  As the ISHC continued to identify these skills they invited potential members with these skills to join. Consultants specializing in the hotel industry with expertise in hospitality specific areas such as appraisals, architecture, casinos, marinas, water parks, golf courses, condo hotels, and convention centers. Today this “by invitation only” society has over 200 members in 26 countries. It would be rare today for a hospitality related project not to be involved in some manner with an ISHC member.

Thinking About Becoming a Hotel Consultant ?

What a Lender Needs to know Before a Hotel Takeover

Not suggesting that there will be a stream of lender takeovers anytime soon that would resemble the period between 2008 and 2010, but it is a concern  of a few of my lending clients.

My first response  is – “Engage an experienced hotel management company – not just a hotel manager!”  If  a bank merely hires a “hotel manager” – albeit the best and most experienced, the manager and all the employees of the hotel immediately become the employees of the bank. That alone ought to help the lender in the decision-making process.  Further, a hotel unlike any other commercial real estate asset is a service facility – more like a retail operation than an apartment or office building. There are inherent liability issues – guests, employee relations, liquor liability to name a few.

A competent management company can quickly put an evaluated cadre in place and  “triage”  the most critical situations relating to the newly acquired asset. They could include, but certainly are not limited to:

  • An interim and mid-term cash needs analysis.
  • A list of major repairs and capital replacement items that are immediately needed?
  • A forward looking operating budget between one and three years.
  • The status of the hotel’s relationship with the franchisor.

 

A proficient management company will provide periodic updates to the bank as well as suggest experienced hotel brokers or potential purchasers of the hotel.

 

Thinking About Becoming a Hotel Consultant?

What’s the ROI on Hiring a Hotel Consultant

The major advantage of going outside of your own company for advice and feedback is obtaining an independent, detached, and objective viewpoint.

  • An objective consultant could show you why or why you should not develop that new hotel.
  • A consultant with detachment can provide input on your reorganization structure.
  • A consultant can render an objective opinion on the current management of your hotel.
  • A consultant give you feedback on your plans to reposition your hotel.

A consultant’s validated opinion to abandon the development or purchase of a hotel is merely one example of a “consultant investment.”

But if you can’t measure the results of your consultant investment then you’ll never know your ROI. Most buyers of consulting services are delighted to invest at a 5 to 10 times ROI. Often, as in the above examples the deliverables from a consultant could go even higher.

Interested in learning more about Opportunities in Hospitality Consulting?

Email Us:
drew@dimondhotelconsulting.com
Connect With Us:
    
Call Us:
(615) 974-7349

Copyright © 2021 · Dynamik Website Builder on Genesis Framework · WordPress · Log in