Advisory & Consulting

LW Hospitality Advisors® (LWHA®) provides high-touch customized advisory and consulting services to a broad array of clients. Our experience through changing economic cycles has provided us the ability to effectively navigate today’s opportunities and challenges to provide unparalleled advice. LWHA® offers a unique combination of experience in hotel operations, hotel transactional work and hotel ownership, which in turn provides our clients with a thorough and hands-on understanding of the hotel business alongside the business of hotels.

  • Comparable Sales Analysis
    A Comparable Sales Analysis, also known as a Sales Comparison Approach is one of the three approaches to value, commonly used in real estate appraisal. LW Hospitality Advisors (LWHA) maintains a database of thousands of hotel transactions, which provides the latest market data to compare a subject property’s characteristics with those of comparable properties which have recently sold in similar transactions. Coupled with a sole focus on the lodging industry, LWHA’s depth and breadth of knowledge of hotel transactions uniquely positions our experts to adjust the prices of the comparable transactions which influence value.
  • Critical Asset Review
    Designed to inform short-term strategic decisions about hotel assets, LW Hospitality Advisors (LWHA) Critical Asset Review services includes current and future opinions of value, including important hold, invest or sell recommendations. We review market competitiveness, pricing, staffing, margins, sales & marketing, product, physical condition, branding and management effectiveness with a view towards enhancing value for the stakeholders.
  • Development / Refurbishment / Renovation & Repositioning Cost Analysis
    Economic feasibility analysis is the determination of the financial viability of an idea, whether development of a new hotel, refurbishment of portions of or an entire existing property, or a complete renovation and repositioning of a lodging asset. Principals of LW Hospitality Advisors (LWHA) have extensive experience developing, refurbishing, and renovating and repositioning all types of lodging facilities. LWHA is expert at determination of accurate Cost Analysis which is a critical determinant of any economic feasibility analysis.
  • Development Services
    Principals of LW Hospitality Advisors (LWHA) have extensive lodging real estate development, construction, and management expertise. LWHA offers complete site-selection, feasibility, development and construction services delivering hotel assets under an umbrella of leading brand families including InterContinental Hotels Group, Hilton and Marriott. LWHA has been involved in all types of ground-up hotel developments and building conversions across all market segments. From site selection and design review, through construction oversight, LWHA provides value- added advisory services throughout the development process.
  • Discounted Cash Flow Analysis
    Having executed hundreds of lodging valuations and feasibility studies throughout the world, Principals of LW Hospitality Advisors (LWHA) have mastered hotel Discounted Cash Flow Analyses (DCF). We have the expertise and the tools to logically and accurately think through the factors that affect an asset, such as future sales and expense growth and profit margins, as well as consider market based weighted cost of capital that reflects the risk applicable to projected net income. LWHA’s DCF Analysis services provide a reality check to broker and other opinions of value.
  • Economic Feasibility Analysis
    LW Hospitality Advisors (LWHA) Economic Feasibility Analysis services objectively and rationally uncover the strengths and weaknesses, opportunities and threats of an existing hotel or proposed venture, the resources required to carry the project through, and ultimately the prospects for success. Investors and lending institutions have long recognized LWHA for its objectivity and unbiased approach, and the credibility of our Economic Feasibility Analysis findings and conclusions.
  • Economic Impact Analysis
    LW Hospitality Advisors (LWHA) Economic Impact Analysis services examine anticipated direct and indirect monetary benefit(s) or detriments on a given area as a result of development of a hotel project. Areas of impact study include: construction employment, operations employment; visitor spending, and tax (sales, income, hotel room revenues, property, and other) revenues.
  • Facilities Planning & Development Consulting
    LW Hospitality Advisors (LWHA) Facilities Planning & Development Consulting services offer multidimensional market research and profit-potential analysis of property requirements and planning criteria for a wide variety of proposed hotel and restaurant projects. LWHA collaborates with architects to identify and recommend the optimal project development sequence, conceptual and space planning, and construction management within a balanced design, operations, and financial framework.
  • Fairness Opinions
    LW Hospitality Advisors (LWHA) is uniquely qualified to render Fairness Opinions as to whether the terms and conditions of a proposed lodging acquisition, hotel management agreement, ground lease, partnership structure, merger or sale of part or all of a business are fair to the stakeholders of the entity concerned.
  • Highest & Best Use Analysis
    LW Hospitality Advisors (LWHA) conducts Highest & Best Use Analyses of property as if vacant and as if improved. LWHA is exceptionally skilled to conclude Highest & Best Hotel Use of an asset and recommend:
    • Hotel Type: Brand/ Independent, All-Suite, Boutique, Conference, Convention, Destination Resorts, Extended Stay, Gaming/Casino, Golf, Ski, Spa, and Waterpark.
    • Hotel Market Class: Luxury, Upper-upscale, Upscale, Upper-midscale, Midscale, Economy

    A highest and best use analysis can be either completed within an appraisal, or as a stand-alone assignment.

  • Market Supply & Demand Study - Occupancy & Average Rate Projections
    LW Hospitality Advisors (LWHA) Market Supply & Demand Study – Occupancy & Average Rate Projections include the following steps:
    • analyze key documents relative to the proposed Hotel’s anticipated performance including, but not limited to, Smith Travel Research reports, comparable operating statements, and marketing plans;
    • assemble and analyze key economic and demographic data pertaining to the immediate market area and the regional market area to estimate the future growth potential of lodging demand;
    • interview representatives of local and state economic agencies and other related organizations such as the Convention and Visitors Bureau, Chamber of Commerce and Economic Development Agency to determine patterns of growth, stability or decline in the proposed Hotel’s market area;
    • assess the subject surrounding market to identify major known external factors that may positively or negatively affect the future lodging demand for the subject Hotel;
    • tour select existing competitive hotels to evaluate the present quality level, mix and scope of facilities, and physical condition. Interview representatives of key competitive hotels regarding market trends and their individual hotel operations, including demand segmentation, historical performance, market positioning and any proposed improvements and/or renovations;
    • investigate any planned competitive hotel additions or expansions in the immediate and surrounding areas to determine each development’s progress, anticipated size, type, class, chain affiliation, facilities and timing, plus an assessment of each project’s likelihood of completion;
    • analyze the historical and current lodging demand for the competitive set and estimate future changes in market demand based on factors studied in the market analysis;
    • prepare occupancy estimates for the competitive lodging market through stabilization;
    • evaluate the subject hotel facilities program relative to the ability to satisfy the potential demand segments available in the market. LWHA will address the proposed Hotel’s overall quality level, guest room inventory, amount of meeting space, and mix of ancillary amenities (food, beverage, recreational, in-room technology);
    • based upon the subject hotel facilities program, estimate occupancy and average daily rate for the initial 10 full years of operation.

  • Market Study – Projections of Income & Expenses
    LW Hospitality Advisors (LWHA) hotel Market Study – Projections of Income & Expenses include all of the steps outlined in our Market Supply & Demand Study – Occupancy & Average Rate Projections plus:
    • development of detailed annual revenue and expense estimates corresponding to the volume of business and scope and quality of operations indicated by the estimates of future occupancy and average daily rate using operating data from comparable lodging facilities, and industry statistics;
    • preparation of a financial analysis for the subject Hotel for 10 full years of operation. Schedules are presented in inflated dollars and conform to the Uniform System of Accounts for Hotels.

  • Mixed Use Asset Strategy Consulting
    Mixed use real estate projects in urban and suburban locations generally integrate elements of residential, retail, office, recreation, entertainment, transit, and in many cases lodging. LW Hospitality Advisors (LWHA) provides advice on the appropriate size, scale, and balance between the hotel component and other real estate components in order for a mixed use development to be viewed as one integrated development and operation. Our Mixed Use Asset Strategy Consulting services often begin at the pre-development stage, working with land planners, lawyers, and architects in order to create the optimal product concept and market supported business model for a particular site.
  • Property Tax Assessment Appeal Evaluations
    LWHA Asset & Property Management Services (LWHA) provides guidance as to an optimal strategy for pursuing a successful hotel property tax appeal based on an asset’s situation and the particular jurisdiction involved. In most jurisdictions, a hotel assessed at a higher valuation than other similar properties may bear a very heavy burden of proof in a tax appeal. Before undertaking an appeal based on uniformity or equal protection requirements, owners should consult with LWHA for assistance regarding the relative benefits and costs of pursuing this type of action.
  • Repositioning Consulting
    LW Hospitality Advisors (LWHA) possesses extensive experience in successful product positioning. LWHA has the knowledge of local markets, the latest in competitive product offerings and effective branding strategies, as well as the skills to formulate a creative vision for a property-specific repositioning. LWHA employs proven methods to analyze and quantify potential financial benefits to reposition a property, and suggest implementation of the repositioning strategy.
  • Restaurant Consulting
    LW Hospitality Advisors (LWHA) Restaurant Consulting services include: market feasibility studies, operational reviews, revenue and cost control reviews, concept menu (re)design and development, management/franchise selection and negotiation, site selection, location analysis and lease negotiation, repositioning studies, facility planning, and strategic recommendations.
  • Return On Investment Analysis
    LW Hospitality Advisors (LWHA) prepares Return On Investment (ROI) Analyses, to validate or disprove high-dollar investment(s) in hotels by considering the benefits and costs of a given investment, along with the resulting net present value (NPV), payback, and ROI metrics that are required for informed financial decision-making.
  • Site Selection & Evaluation
    LW Hospitality Advisors (LWHA) conducts inspections of development sites to assess location attributes including access, visibility, proximity to demand generators and perceived strengths and weaknesses relative to other competitive hotel facilities and locations.
  • Third Party Independent Reviews
    When making a decision or preparing for litigation, LW Hospitality Advisors (LWHA) provides independent and objective review services addressing third-party appraisal/ advisory reports. LWHA conducts objective Third Party Independent Reviews to assist owners/operators, attorneys, accountants, financiers, investors, developers and government entities with opinions regarding:
    • Completeness of the material under review;
    • Adequacy and relevance of the data, including the propriety of adjustments (if any) to the data;
    • Appropriateness of the appraisal methods and techniques used;
    • Whether or not the analyses, opinions and conclusions are appropriate and reasonable.

  • Transactional Advisory
    As an investor enters the due diligence process for a potential acquisition, LW Hospitality Advisors (LWHA) professionals perform the research and analysis that supports the final decision on the purchase of an asset or a portfolio of properties. Our services include analyses of market performance trends and property historical operating performance, along with financial analysis of estimates of future performance Additionally, we engage in evaluation of management contracts, franchise affiliations, tax assessment levels, technology, life safety, competitive positioning, local market risks, and property improvement plan requirements and capital expenditures.

Appraisal & Valuation

LW Hospitality Advisors® offers dynamic well researched and highly credible hotel real estate appraisal/valuation related services. LWHA® appraisals on all types of lodging assets are prepared by highly skilled valuation professionals degreed in hotel management, experienced in hospitality operations and knowledgeable in hotel real estate and finance.

  • Appraisal & Valuation Offerings
    • Building/Improvements
    • Business
    • Furniture, Fixtures, & Equipment
    • Land
    • Real Estate

  • Lodging Property Types
    • Conference Centers
    • Casinos
    • Hotels
    • Mixed Use Facilities
    • Resorts
    • Spa & Wellness
    • Timeshare/Fractional Ownership Properties

  • Valuation Types & Interests
    • Debt
    • Equity
    • Fee Simple
    • Insurable Value
    • Investment Value
    • Leased Fee
    • Leasehold
    • Liquidation Value
    • Market Value
    • Mezzanine Financing
    • Partial Interest

  • Lodging Company Types
    • Franchise Company
    • Hotel Property Ownership
    • Management Company

  • Valuation Purposes
    • Condemnation
    • Damages Calculations
    • Estate
    • Financing
    • Gift Tax
    • Partnership Reporting
    • Property Tax
    • Purchase Price Allocations

LWHA Asset Management Group

LWHA Asset Management Group offers a comprehensive range of customized asset management and advisory services to maximize the profitability, value and potential of all types of hospitality organizations. Furthermore, as a third-party independent hotel management company, LWHA Asset Management Group is committed to delivering excellence in hotel operations, profitability, and guest service through a hands-on approach and practical experience.

  • Asset & Property Management
    The success of a well-structured hotel real estate investment creates value, and provides benefits to all stakeholders. LWHA Asset Management Group offers the comprehensive knowledge base and experience in dealing with the critical complex aspects of success, namely: the value of hotel real estate investments and the dynamics of the financial and operational aspects of those investments, asset management, and management contracts. LWHA’s Asset Management services assume the responsibility of managing single asset and portfolios of lodging investments, with a goal to exceed the expectations of our hotel owner clients. LWHA’s expertise includes: administration and renegotiation of hotel management contracts, evaluation of capital expenditures and management of their execution, monitoring of expenses to reduce costs, benchmarking an asset’s revenue and expense performance against its past performance and the market, performing asset risk analyses tailored to current market conditions, evaluation of potential refinancing opportunities to reduce debt costs or free up capital for other investment opportunities.
  • Brand and/or Management Selection & Negotiation
    The key to maximizing asset value of a hotel is the selection of an optimal brand and/or operator. Furthermore, under any structure, including a lease, franchise or management agreement (brand or white label management group), it is imperative that the terms of any and all agreements be at prevailing market levels. The advantages of successful branding are immense, from global marketing coverage to increased in-house efficiencies. The team at LWHA Asset Management Group possess the required industry knowledge, competence, experience, and contacts to ensure the most appropriate agreement(s) is put in place, at optimal market terms, and within an efficient timeframe.
  • Capital Budgeting
    Capital Budgeting is the process of determining how much to spend on property and equipment and which assets to purchase. A significant relationship exists between a capital budget and an operational budget. Sophisticated owners plan capital and/or construction budgets for several years into the future. Capital budgeting for hotels must consider government regulations including OSHA (Occupational Safety & Health Administration) which requires safety equipment to be compliant with local laws as well as federal laws. Capital Budgeting takes weeks of planning but one wrong decision can affect whether a company will stay in business or not. Senior executives of LWHA Asset Management Group possess the required industry knowledge, competence, experience, and contacts to ensure that Capital Budgeting results in long term benefits that outweigh costs.
  • Food & Beverage / Restaurant Consulting
    LWHA Asset Management Group Food & Beverage / Restaurant Consulting services include: market feasibility analysis, operational reviews, revenue and cost control reviews, concept and/or menu design/redesign, management and/ or franchise selection and/or negotiation, site selection, lease negotiation, facilities planning, and strategic recommendations.
  • Hospitality Property Management
    With a real world tested and proven focus on effectiveness and efficiency, principals of LWHA Asset Management Group have successfully managed a variety of hotel properties. LWHA’s philosophy in the day-to-day running of a hotel is simple: deliver the most satisfying experience to our guests, a rewarding atmosphere for teammates, and maximal profitability that always exceed stakeholder(s) expectations.
  • Interim Property Management
    LWHA Asset Management Group specializes in hotel takeovers on short notice to undertake the role as the operating company for a period of as short as 30 days or longer if necessary. Having managed and asset managed all types of lodging facilities, LWHA is experienced with a wide variety of distress situations, and the assumption of day to day hotel operations with minimal disruption. We are highly skilled at rapidly identifying problem areas, altering the directional course, and stabilizing a hotel’s operation.
  • Internal Control / Accounting Analysis
    LWHA Asset Management Group specializes in developing and implementing effective and efficient internal control policies and procedures applicable to all facets of a hotel’s operation, from purchase through sale. LWHA senior executives are highly skilled at detecting and preventing fraud and protecting an organization’s assets. We are experienced at ensuring integrity of property financial and accounting information, achieving operational and profitability goals, and communicating formulated management principles, rules, and guidelines to achieve long term success.
  • Investment Counseling / Due Diligence
    LWHA Asset Management Group is highly skilled at analyzing lodging investments through a surgical investigation of a physical asset and/or an operating company. LWHA’s Hotel Investment Counseling & Due diligence processes unearth unknown and/or potentially surprising detail(s) which positions would-be investors to either confirm an original LOI offer, renegotiate based on due diligence findings, or cease pursuit of a transaction.
  • Loan Restructuring / Workouts
    LWHA Asset Management Group is experienced with a variety of hotel workouts including: debt reorganization, forbearance, foreclosures or deed- in-lieu transfers, bankruptcy, and attracting new capital. Restructuring debt that is too onerous to service or refinance is part art and science. We concentrate on a myriad of restructuring issues while staying laser focused on the prerequisite of having sufficient liquidity to complete the process. LWHA facilitates maximization of property value, cash flow, and a strategy that benefits both debtors and creditors.
  • Operational Review & Analysis
    LWHA Asset Management Group conducts detailed reviews of hotel operations to insure maximization of revenues and minimization of expenses. LWHA Operational Review & Analysis mandates encompass the following steps:
    • Confidential review of guest perception of service delivery
    • Confidential review of brand compliance
    • Critical asset review of a physical plant and FFE/capital expenditure planning
    • SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis
    • Marketing, sales, revenue and distribution management study
    • Labor management review
    • Internal processes, policies and procedures analysis – establishment of SOP Guidelines
    • Operational cost analysis
    • Profit & Loss forecasting review
    • Credit management and cash-flow management review
    • Third party management contribution analysis
    • Conclusion(s), strategic recommendation(s), and written action plan

  • Property Tax Assessment Appeal Evaluations
    LWHA Asset Management Group provides guidance as to an optimal strategy for pursuing a successful hotel property tax appeal based on an asset’s situation and the particular jurisdiction involved. In most jurisdictions, a hotel assessed at a higher valuation than other similar properties may bear a very heavy burden of proof in a tax appeal. Before undertaking an appeal based on uniformity or equal protection requirements, owners should consult with LWHA for assistance regarding the relative benefits and costs of pursuing this type of action.
  • Receivership
    LWHA Asset Management Group facilitates hotel receivership services to secure and stabilize a hotel when time is of the essence and collateral value is at risk. LWHA receivership services include: reviewing receivership orders, court appearances, pre- and post-takeover service, and reporting assistance.
  • Sales and Marketing Services
    LWHA Asset Management Group Sales and Marketing Services focuses on:
    • Achieving optimum balance between Direct vs. Indirect Channel Sales
    • Optimizing use of the Internet, online distribution channels and eMarketing
    • Collaboration with group business generators, meeting planners, wholesalers, incentive travel companies, corporate travel departments, and franchise-sponsored marketing programs
    • Deploying effective marketing campaigns
    • Employing effective sales incentive programs
    • Establishing professional sales administrative processes
    • Developing effective approaches to prospecting, qualifying, selling and closing
    • Trade show presence
    • Review of monthly sales reports
    • Press release creation and dissemination
    • Assist with optimizing business segmentation across commercial, group and leisure
    • Create and maintain internal RFP response processes for maximum capture of Corporate and Consortia demand

  • Staffing, Wages & Benefits Analysis
    LWHA Asset Management Group hotel Staffing, Wages & Benefits Analyses are designed to evaluate labor practices and identify appropriate levels of staffing for all hotel departments. Employees are the vital resource of a hotel’s success, and LWHA offers proven techniques and methods to improve service levels while reducing turnover rates and saving money on recruitment costs. LWHA provides custom detailed reviews of every aspect of labor management, including recruiting, business volume forecasting, staffing levels, labor standards, scheduling and deployment, work processes, time and attendance tracking, and labor management reporting.
  • Strategic Planning & Investment Analysis
    LWHA Asset Management Group provides individual asset and company Strategic Planning & Investment Analysis services which involve extensive scrutiny of the market and development of alternative strategies. LWHA’s evaluation of each strategy considers: a SWOT analysis, level of required capital investment, potential risk(s) and reward(s), and final determination of a course of action and a plan for implementation. Strategic Planning & Investment Analysis mandates include:
    • Buy/sell/lease analyses
    • Financing/refinancing analyses
    • Renovation, rebranding, and/or repositioning analyses
    • Capital expenditure review
    • Value optimization
    • Benchmarking against relevant competitive set
    • Title and form of ownership
    • Capital and corporate structure
    • Business plan evaluation
    • Investment underwriting
    • Concept development and positioning analysis
    • Space programming

Dispute Analysis & Litigation Support

LW Hospitality Advisors® (LWHA®) Dispute Analysis & Litigation Support services provides a range of services focused on lodging real estate-related complex litigation involving property economic issues, dispute analysis, damages theory and trial support services. LWHA­® possesses core competencies in property valuation, economics, finance, statistics, damages theory, and expert witness testimony. Coupled with quantitative and technical skills and wide ranging operational hotel experience, this practice provides the benefit of a multi-disciplinary approach to problem solving characterized by collaboration, specialized expertise and recognized thought leadership. Our clients include law firms, government entities, developers, investors and lenders.

  • Dispute Analysis
    Dispute analysis occurs at the earliest stages of every engagement to identify the relevant technical issues and to provide a thorough understanding of the real estate and financial components of the case. LWHA® experts vet case issues, providing context and clarity to property and financial issues. We also assist counsel in decisions regarding whether to pursue litigation, alternative dispute resolution options, or other courses of action.
  • Trial Support
    LWHA® assists in framing trial issues, the preparation of rebuttal reports and post-trial memoranda, and in the preparation of cross examination.
  • Litigation Consulting
    LWHA® assists attorneys in identifying key issues, developing case strategies, and identifying potential experts.
  • Example Experience
    Examples of our experience include:
    • Arbitrations and mediations
    • Bankruptcy matters
    • Best practices assessments
    • Class action suits
    • Damages calculations resulting from:
      • breaches of contract and fiduciary responsibility
      • contamination and environmental impairment
      • construction defects
      • lender liability
      • insurance claims
    • Eminent domain proceedings
    • Hotel brand impact
    • Landlord/Tenant dispute
    • Partnership dispute
    • Professional malpractice cases
    • Rent reset
    • Tax matters including:
      • property Tax
      • transfer Tax
      • Income Tax
      • sales tax
      • occupancy tax
      • use tax
    • Valuation of a wide variety of hotel property types and real property interests, including:
      • Partnerships
      • Partial and fractional interests
      • Debt and equity interests in hotel real estate
      • Multi-asset lodging portfolios
      • Leasehold estates
      • Life estates
      • Remainderman estates
      • Leased fee estates

  • Expert Testimony
    LWHA® provides expert testimony relating to property economics and damages issues.
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