Hospitality, Tourism Consulting Canada - Hotels, Hotel Chains, Tourism Operators

By: Pkf Canada  09-12-2011
Keywords: appraisals, Hospitality And Tourism

PKF Consulting provides a wide range of services to the hospitality and tourism industries. We bring depth to our analysis with any assignment by leveraging our vast experience, comprehensive industry databases and relationship with members of the industries that we serve. Examples of the major services that we provide are summarized below. Please contact us if you require additional information about the services we provide.

Market and Economic Feasibility Studies

Our integrated approach incorporates a detailed evaluation of the market, the trade area, and the proposed location. An assessment of future supply/ demand factors and consumer trends provide the basis for substantiated forecasts. Relying on our industry database, our in-house models and primary market research, as well as our experience, these forecasts are incorporated into overall financial forecasts for the operation. Then, the overall financial forecasts are related back to the level of capital investment required.

Estimates of Value/ AACI or MAI Appraisals

We are frequently retained on behalf of financial institutions to prepare Valuations and/ or Appraisals for operations. We examine the market and financial potential of the operation and value the business as a going concern. Depending on the requirements of the study, our appraisals are completed and signed by our AACI certified appraisers. If required by a U.S. lender, we would work with a MAI certified appraiser from our U.S. firm. Our appraisals are trusted and valued by all major industry lenders.

Acquisitions and Underwriting Due Diligence

Understanding the profit potential of an operation is a critical component of any acquisition for both purchasers and lenders. Our approach includes an evaluation of market conditions, physical plant and historical, current and future operating results to identify risks and opportunities associated with the transaction. With current knowledge of all major Canadian markets and an experienced team, we are able to provide timely and cost effective advice.

Asset Evaluation, Strategy Development and Implementation

Owners and operators of existing properties are faced with numerous questions concerning changes in Canada's dynamic hotel industry and the impact these changes may have on their hotels. We help answer their questions by offering objective analysis and providing advisory services based on our many years of industry and consulting experience.

Operational Reviews

In order to identify potential problem areas (e.g. pricing, operating costs, staffing levels, controls, etc.), we compare the subject operations to industry norms using a preliminary benchmarking approach. Then, focusing on these problem areas, we assess the situation in detail and provide the owner/ operator with implementable solutions.

Management Contract, Franchise Agreement and Lease Negotiations

We believe that an effective agreement is one that provides an identifiable economic benefit to both parties. While the nature of specific agreements will vary considerably, the rights and obligations of the owner and of the management company, must be clearly identified and documented. Our process involves gaining consensus on the primary business terms in advance of preparing a full agreement. We work closely with property owners and their legal counsel to achieve agreements that are fair, and reflective of the owner's objectives.

Litigation Support

Due to the potential for conflicts with clients of the firm in Canada or internationally, requests for litigation support are carefully considered in advance of any commitment. In situations where it is appropriate for us to be involved, we provide objective third party advice. We are accepted as experts because of our extensive experience in the industry. Our experience includes advice in loss of business claims, arbitration hearings and assessment appeals.

Asset Management/Owners Representation

We do not provide long-term management services to the industry. We do, however, provide interim management services in situations where the stability of an operation may be at risk. We also act as the owner's representative to ensure that the objectives of the owner are being satisfied by the manager/ operator of the property. In this role, we are able to utilize our operations and industry consulting experience to contribute positively to the operating results of the business.

Strategic Planning

Utilizing our comprehensive industry experience, knowledge of emerging industry trends and outlook for the future, governments, associations and private companies often retain us to provide third party strategic advice. We take pride in our ability to understand the short and long term issues facing an organization, market or asset and our ability to provide informed strategic alternatives and recommendations.

Economic Impact

Despite the fact that the hospitality and tourism industry accounts for about 2% of Canada’s gross domestic product, the industry is often faced with lackluster public support. Economic Impact assessments are often included within the scope of a larger project in order to justify or market the project to the public. However, we will also work with an approved Tourism Economic Assessment Model (TEAM) provider on comprehensive economic impact studies. In this role, we will generally facilitate the study and provide the inputs for the TEAM model.

Industry Assessments

We have a unique ability to monitor the health of the industry because of our comprehensive proprietary databases, industry contacts and third-party status. Given this, we are often retained by governments or industry associations to provide ‘state of the industry’ or ‘impact’ assessments. Assignments of this nature are tailored towards the requirements of the client however often include industry surveying, customized data mining and analysis and phased reporting.

Keywords: appraisals, Hospitality And Tourism