Validation Study And Developer Representation Negotiation Of A Long Term Management Agreement In Connection With A Proposed 300 room Le Méridien Hotel In Canada
The Client
Family Office
The Mandate
Proposed development of a 300 room Le Méridien Hotel and Residences situated at a prime location in a major Canadian city
The Results
- Performed validation study to determine economic feasibility of the proposed project
- Provided development consulting services which included review and analysis of management contract term sheet submitted by Starwood Hotels & Resorts Worldwide, Inc. at clients request
- Negotiated with on behalf of client all business points of a mutually agreed upon hotel management agreement with Starwood Hotels & Resorts Worldwide, Inc.
- Comparing original management contract term sheet with agreed upon deal, LW Hospitality Advisors® achieved $4.7 million in quantifiable savings for client over term of the agreement
- Unquantifiable value enhancement achieved through provision allowing owner after seven years from opening, to sell the asset free and clear of management encumbrance which if elected, would require a Le Méridien license agreement
- Recommended specialized Estlegal counsel which client engaged to document terms and conditions of management contract
- Additional development consulting services included:
- working with architect and designer on space programing
- acted as liason between development team and the brands design and construction team
- negotiated brand waivers due to construction constraints
- assisted in development of project budget
