STRATEGIC PLANNING SERVICES

Berins & Co., LLC has helped hotel management companies and lodging real estate firms build a foundation for future growth through sound planning, thorough market research and a systematic approach to development and implementation of successful strategies at both the corporate level and at individual hotels.
 

In today’s business world, corporate leaders must stay focused on the big picture and prevent the organization from devolving into a reactive mode.  This can best be achieved by stepping back from time to time to reaffirm or modify the purpose and objectives of the organization.  In doing so, we apply our Core Principles to the planning process helping make sure that corporate politics, organizational silos, competitive agendas, and narrow thinking don’t derail the effort.

Corporate Level

 

  • We have helped hospitality companies from start-ups to large-cap public enterprises by helping organize and structure the planning process, select participants for a Planning Committee, assemble both internal and external factual data needed and distribute it in advance of the planning session, interview or survey partners and associates to identify obstacles to success and set goals for the Committee.

  • We recommend an off-site location for a Strategic Planning meeting.  Often it makes sense to organize small sub-committees by subject (e.g. Marketing, Finance, Development, Human Resources).   We serve as moderator/facilitator for all full Committee discussions and assist sub-committee leaders on meeting planning objectives.

  • We help organize any report or other communications of the contents of the Plan or next steps.

 

Hotel Level

  • For individual hotels, our Assessment of Strategic Options starts with a status quo projection. What does the future hold for the hotel if nothing is changed?  Will it continue at its present RevPAR Index?  Will its customers continue to find the product competitive?  How will it be affected by new supply?  Will its EBITDA increase or decline?

  • After doing the market research, detailed property inspection, competitive evaluation and discussions with the hotel’s executive team, asset manager, ownership and management company, we identify and suggest three or four options to study.  For each option, we lay out a series of assumptions that we will make regarding: 

    • Property condition/renovations/CapEx required (based on broad industry data)

    • Market positioning/rates

    • Market segmentation/target markets

    • Branding/affiliation

    • Management 

    • Services offered (restaurants/bars/meeting space/business amenities/recreation amenities

    • Operating concepts 

    • Changes to marketing strategies & tactics 

  • For each of the agreed-upon options, we estimate market penetration by segment, occupancy, rates by segment, F&B and other departmental revenues & expenses, undistributed and fixed expenses down to EBITDA.

  • We then model DCF return on investment comparing the incremental cash flow to the additional investment required, the present value of the hotel and present our assessment of the strategic options to the client.