Portfolio Analysis Services
Our service includes the design and execution of investment strategies, risk/return requirements, diversification & asset allocation, portfolio risk & return, portfolio optimization and portfolio impact analysis, strategic repositioning of existing portfolios and performance benchmarking.
We help clients construct portfolios that provide the highest levels of return for any given level of risk, provide strategic guidance on steps to be taken to maximize risk-adjusted portfolio returns and assess portfolio implications of acquisitions and dispositions.
A portfolio analysis is a useful tool in evaluating how your hotel investment portfolio is performing in terms of rate of return and risk. It is accomplished by looking not only at how individual hotel investments perform but also how they perform together.
Our analysis can identify underperforming or excessively risky hotels and provide guidance as to where changes to investment allocations should be made to keep an investor on track to meet investment objectives. Although each individual hotel investor has his own goals in terms of performance, a routine analysis can be useful for any hotel portfolio regardless of its strategy.
Transaction Support & Due Diligence
Includes market performance trends and historical and potential operating performance, financial modeling of estimates of future performance and evaluation of management contracts/franchise affiliations, competitive positioning, PIP requirements and capital expenditures.
Hotel Market Selection & Targeting
Proactively identifies markets that present strategic or tactical opportunities specific to the objectives of a portfolio which include identifying underpriced hotel assets that are likely to have negatively correlate returns with other assets in a portfolio. By comparing a market’s long-run “natural occupancy rate” and its equilibrium Real ADR and equilibrium Real RevPAR to its current occupancy, Real ADR and Real RevPAR we assist hotel developers to identify markets where new supply is warranted and economically justified.
Hotel Asset Management & Monitoring
Providing guidance to owners on budgets, performance, franchise affiliation, management contract terms and performance, value appreciation, capital investment, buy/hold/sell decisions and long-term value.
Market & Financial Evaluation
Includes estimating the demand for a hotel, it’s competitive positioning, and marketability, identifying likely revenues and expenses including occupancy, average daily rate, other departmental revenue and expenses fixed operating costs, development costs, cash flow and projected returns.
Historical & Forecast Hotel Market Cycle Analysis
Determining current and future market cycle positions for individual hotels, competitive sets and markets and providing strategic direction on opportunities to exploit the cycle in terms of acquisition/disposition, capital expenditure, and operating decisions.
Hotel Market Forecasting
We use either univariate (exponential smoothing & ARIMA), bootstrapping or econometric models to forecast supply, demand, occupancy, ADR, RevPAR, NOI and cap rates for clients at the property, competitive set, market or segment levels with predetermined prediction intervals.
Hotel forecasts tend to rely on the familiar “point” forecast – a single number representing the best estimate of the result. But point forecasts provide no indication of the uncertainity in the number, and uncertainity is an important consideration in decision making.
Call us today to see if your business can benefit from our hotel forecasting services which incorporate prediction intervals in all of our forecasts. Our objective is to generate forecasts as accurate and unbiased as can reasonably be expected – and to do this as efficiently as possible so that our clients can make better decisions.
Hotel Portfolio Efficiency & Productivity Analyses
We help hotel owners, hotel brands and hotel management companies achieve significantly improved operating performance through frontier peer-based benchmarking and efficiency analyses which employ cutting-edge, not cookie-cutter performance measurement techniques.
We determine the relative efficiency of hotels in a portfolio by simultaneously evaluating multiple inputs and outputs and excluding external factors beyond the control of management in order to compare the efficiency and productivity of individual hotels or departments. We identify potential efficiency gains, best practice, and peer-based improvement targets.
Call us today to see if your hotel portfolio could benefit from our services. We gain enormous satisfaction helping our clients improve operating performance while enhancing the guest and employee experience.
Price/Value Market Positioning & Pricing Strategy
We help hotels identify which hotel attributes (amenities, location, service, physical property, brand name and reputation, guest-room & bathroom and quality standards) are the most effective at creating value for a particular hotel and its competitors, using the Analytic Hierarchy Process (AHP). Based on a ranking of the value-to-price ratio for each hotel we develop competitive pricing strategies via the attributes-based, computerized rate and competition analysis pricing model. We also determine the price elasticity of a market and the ability of a hotel to move rate.
To learn more about how our services can help you make better decisions, please call us at 973-723-0423.