ROADMAP · HOTEL
Hotel project
A hotel combines property and an operating business. Address, permissions, building, operator and economics must work as one system.
Who it fits
For investors who accept operating risk or transfer it to a qualified operator on verified terms.
When to reject it
Reject it when use is unconfirmed, the licence does not support the intended structure or the downside opening budget is unfunded.
Value-creation logic
Value combines permitted use, building quality, commercial concept and operator capability.
Starting inputs
- Address and PEUAT or local regime
- Operating documents and technical condition
- Owner-operation, lease or management model
- CAPEX, working capital and opening contingency
Documents at the decision gates
| Review | Evidence | Stop signal |
|---|---|---|
| Address and activity | Use, licence and conditions at the address | Incompatibility with the intended format |
| Operating history | Monthly rooms, revenue, costs and receipts | Revenue cannot be reconciled to primary records |
| CAPEX and opening | Inspection, fit-out, working capital and contingency | Funding shortage under delay or weak season |
| Operator | Agreement, fees, obligations and termination | Unallocated risk or costs |
Distinguish hotel permission from tourist-apartment rules. Licence review, ADR / RevPAR and GOP / NOI / cash flow answer different decisions.
A shared nine-stage process
Objective and capital framework
- Decision
- Decision: define ownership model, operating role, capital and reserve.
- Evidence
- Evidence: documented inputs and review conclusions for ownership model, operating role, capital and reserve.
- Risk
- Key risk: committing before the assumptions for ownership model, operating role, capital and reserve are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for ownership model, operating role, capital and reserve are confirmed.
Investment thesis
- Decision
- Decision: define combined value of the property, licence and hotel operation.
- Evidence
- Evidence: documented inputs and review conclusions for combined value of the property, licence and hotel operation.
- Risk
- Key risk: committing before the assumptions for combined value of the property, licence and hotel operation are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for combined value of the property, licence and hotel operation are confirmed.
Search and first filter
- Decision
- Decision: define address, PEUAT, format, demand and operator interest.
- Evidence
- Evidence: documented inputs and review conclusions for address, PEUAT, format, demand and operator interest.
- Risk
- Key risk: committing before the assumptions for address, PEUAT, format, demand and operator interest are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for address, PEUAT, format, demand and operator interest are confirmed.
Preliminary economics
- Decision
- Decision: define revenue, operating costs, CAPEX and holding costs.
- Evidence
- Evidence: documented inputs and review conclusions for revenue, operating costs, CAPEX and holding costs.
- Risk
- Key risk: committing before the assumptions for revenue, operating costs, CAPEX and holding costs are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for revenue, operating costs, CAPEX and holding costs are confirmed.
Legal and technical review
- Decision
- Decision: define title, permitted use, licences, building and operator.
- Evidence
- Evidence: documented inputs and review conclusions for title, permitted use, licences, building and operator.
- Risk
- Key risk: committing before the assumptions for title, permitted use, licences, building and operator are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for title, permitted use, licences, building and operator are confirmed.
Structure and acquisition
- Decision
- Decision: define acquisition, management or lease terms and closing conditions.
- Evidence
- Evidence: documented inputs and review conclusions for acquisition, management or lease terms and closing conditions.
- Risk
- Key risk: committing before the assumptions for acquisition, management or lease terms and closing conditions are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for acquisition, management or lease terms and closing conditions are confirmed.
Strategy delivery
- Decision
- Decision: define design, fit-out, permissions, team and pre-opening.
- Evidence
- Evidence: documented inputs and review conclusions for design, fit-out, permissions, team and pre-opening.
- Risk
- Key risk: committing before the assumptions for design, fit-out, permissions, team and pre-opening are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for design, fit-out, permissions, team and pre-opening are confirmed.
Control and reporting
- Decision
- Decision: define CAPEX, programme, operating indicators and owner decisions.
- Evidence
- Evidence: documented inputs and review conclusions for CAPEX, programme, operating indicators and owner decisions.
- Risk
- Key risk: committing before the assumptions for CAPEX, programme, operating indicators and owner decisions are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for CAPEX, programme, operating indicators and owner decisions are confirmed.
Stabilisation and exit
- Decision
- Decision: define stabilise operations, lease to an operator or sell the asset.
- Evidence
- Evidence: documented inputs and review conclusions for stabilise operations, lease to an operator or sell the asset.
- Risk
- Key risk: committing before the assumptions for stabilise operations, lease to an operator or sell the asset are tested.
- Control gate
- GO/STOP: proceed only when the inputs and owner for stabilise operations, lease to an operator or sell the asset are confirmed.
Review scenarios
Base case
Status is confirmed, CAPEX and opening are controlled, and the operating model uses verifiable assumptions.
Downside case
Test a slower opening, lower occupancy and rate, higher costs and additional CAPEX.
Frequently asked questions
Where does hotel review start?
With permitted hotel use at the exact address and the establishment documents, not an occupancy forecast.
Must the owner operate it directly?
No. Owner-operation, lease and management allocate risk and result differently.
What is a STOP gate?
Prohibited use, unverified licence, incompatible operator terms or insufficient opening capital.
