Strategic advice for hotels and tourism assets

At CBRE, we believe that the current situation is a good time to take a step back and look at hotels in your portfolio from a more detached perspective.

20 Jul 2020

By Bruno Trenchard

Strategic advice for hotels and tourism assets

Middle East Insights

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At CBRE, we believe that the current situation is a good time to take a step back and look at hotels in your portfolio from a more detached perspective. Is its quality on par with your competitors? Is your positioning and branding relevant in the current market conditions? And once you start ramping up operations to normal levels, is your property’s P&L sufficiently optimised?

REFURBISHMENT FEASIBILITY STUDY

With nearly two thirds of the hotels in Dubai opened more than 6 years ago and the ever-increasing competition in the marketplace, refurbishment will be a key factor for many properties to remain competitive. CBRE has extensive experience and can provide tailored advice regarding refurbishment of properties. We can cover soft refurbishment or more capital-intensive options depending on the state of the property and owner’s strategy.

We can also coordinate with architects and interior designers to produce initial renderings of the refurbishments to provide you with a better understanding of our recommendations.

REPOSITIONING AND REPURPOSING STUDY

Many hotels in the region opened their doors several years ago and in very different market conditions. With the current shift of the hospitality sector and pressure on ADRs and profitability experienced since 2015, some properties are finding themselves misaligned with market realities.

CBRE can provide support to:

  • Evaluate the current branding proposition of your hotel
  • Analyse the opportunity to re-brand your property
  • Support in the search and selection of a new operator
  • Study alternative options such as re-purposing assets to other asset classes or uses; for instance, changing a concept from hotel to long term stay property.

OPERATIONAL HEALTH CHECKS

Our specialised hotels advisory team can support you in an operational review of the asset pre-covid-19 where we conduct extensive analysis of the property’s P&L in order to highlight areas for improvement.
We conduct a deep-dive analysis that covers all revenues and expenses that are part of the hotel’s P&L.

The outcome of our advisory study are clear recommendations on profitability improvements that can be operational or structural changes.

HOTEL VALUATIONS AND FINANCING

CBRE is a global leader for hotel valuations and has extensive experience in the region especially.

We can support you for the re-financing of your hotel properties through valuation advisory and through partnerships with third party debt advisors.


For more information on our hotel services, click here.