Le Méridien Hotel

A Major Canadian City

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
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