by:Maurice Robinson

Hotel and Resort Consultant/Owner ►Maurice Robinson & Associates

Hotels are expensive.  Expensive to build, expensive to operate – in some cases, of course, expensive to stay in! For the developer and investors creating a hotel project, the costs of a hotel development are not always as predictable as they would like, and cost overruns on entitlements, materials and labor can quickly turn a promising project into a quagmire swarming with panicked investors.

If your hotel development runs into financial difficulties that threaten to stop progress and potentially terminate the project, your best bet is to turn to a hotel development consultant.
Consultant Benefits

A consultant can help in a wide variety of ways:

    Obtaining financial benefits from municipalities: Many cities are willing to provide tax rebates, reductions in permit fees, and other financial benefits to hotel developers. An experienced consultant can help obtain these public subsidies for your hotel development project.
    Streamlining of Expenses: With local knowledge of both suppliers and labor, a consultant can study the cash flow of the project and potentially find multiple areas where savings can be carved out and redistributed without sacrificing quality of construction or design.
    Identifying Additional Funding: With some austerity measures in place to keep things moving forward, a consultant can use their knowledge of local financing to seek out emergency bridge loans, additional investors, or other sources of funding that can get a project past a roadblock and back on track to completion and profits.
    Objective Overview: Aside from managing acute financial crises, a consultant can also provide ongoing oversight of the project to ensure that future financial problems are avoided by putting into place pricing controls, labor cost management, and other day-to-day management of costs and other financial matters.