Advisory Services

Paramount Capital Advisors

A Key Driver of Hotel Investment Return is HOW, WHEN and at WHAT COST you finance your hotel. Paramount Lodging Advisors is the “WHO.” Let us help you figure out the HOW, WHEN and WHAT for financing your hotel.

Paramount’s focus on the hotel segment and breadth of expertise across a range of advisory services is a difference-maker that allows us to first understand and then optimally format and present your loan request to the hotel lending community. Rather than attempting to fit the loan requirement into a defined financing solution, we recognize that hotel loan requests are unique and require thoughtful analysis and often times creative solutions.

Whether for a hotel acquisition, re-finance or construction, and whether the circumstances dictate permanent, bridge, mezzanine or equity capital, Paramount Capital Advisors works with a broad range of capital relationships nationally. Securing a financing solution that meets your capital needs is the measure of our success.

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Hotel Value Enhancement

Simply put… We help improve your Net Operating Income.

Whether you are trying to position your hotel for future sale or just want to increase the asset value of your hotel, our team can help you.

Our Value Enhancement Services are Implementation and Results Driven versus the Report Driven industry standard. What this means is that you do not receive a 250-page report each quarter. Instead, our asset management team works directly with your hotel management and property level team putting strategies and ideas in place in the daily operations and providing you concise and relevant reporting.

Paramount Lodging Advisors provides the highest level of value enhancement services based on our years of operations, development and transaction experience. Shown below is more information on our services.

Value Creation

Paramount Value Enhancement services focuses on Value Creation, the principal objective of every hotel owner.

The key elements we focus on are:

Revenue performance
Expense management and control
Brand and Franchise issues
Capital Expenditure considerations
Legal and Safety compliance
Capital Structure and Refinancing

Paramount offers varied and flexible ongoing and one-time services that identify opportunities for Value Creation.

Proven Success

Since we launched our Hotel Value Enhancement Platform in 2010, we have achieved an average increase in Net Operating Income of 18% in the first 12 months of engagement.

Most of our clients start to see improvements in Net Operating Income within 90 Days. Because we are confident in our abilities to improve hotel performance, we offer our clients the ability to cancel our engagement without penalty or cost.

We have never had a Hotel Value Enhancement client cancel an engagement with us (and we hope to keep that track record perfect)!

What We Provide

Paramount Value Enhancement provides ongoing support for your hotel operations, identifying opportunities to increase revenue and reduce costs AND implements these findings into the hotel operations.

In addition to an in-depth initial review of the hotel, we review all monthly performance indicators and provide a quarterly Asset Manager Scorecard with an action plan for managers to implement suggestions.

Additionally, we conduct safety and security audits, marketing audits and utility audits of the property on a regular basis to ensure optimal operations.

PPS Scorecard

The Paramount Property Scorecard (PPS) provides owners a quick and quantifiable measure of the performance of hotel management at the property.

It rates management on a 100-point competitive index for Revenue, Expense and Income Performance compared to relevant, competitive hotels in the industry. Additionally, the PPS Report quantifies potential cost savings and revenue opportunities that can be realized at the hotel. These “value opportunities” are identified by our operations experience and comparative hotel review.

This is a concise, 10 page, easy-to-read report that tells you:

How is my management team performing?

Where are there specific opportunities to improve property income?

Hospitality Consulting

Our approach to consulting is straightforward:

You Ask the Question – We Provide the Answer

These questions may look something like this:

I am purchasing a hotel and have the option of selecting a new brand, what are my options and what is most accretive and why?

My hotel is not performing; is this because of poor management, market conditions, brand, location or a combination of factors?

Does it make sense for us to build a hotel in this market? If so, how many rooms and what amenities should we provide?

Our city has land for development; is it a suitable site for a hotel? How should we solicit developers and how should we structure a deal?

Is it financially beneficial to convert our hotel portfolio ownership to a REIT structure?

WHAT IS YOUR QUESTION?

Whether you are trying to position your hotel for future sale or just want to increase the asset value of your hotel, our team can help you.

Hotel Feasibility

We can help you determine if you should build your hotel and what exactly you should develop.

We study the market, demand generators, and competitive landscape and determine the overall feasibility of a hotel and the optimal size. We create a development budget, financing assumptions, pro-forma projections and investment returns.

The analysis will be developed based on the creation of a construction budget and furniture, fixture and equipment budget, interaction with general contractors, franchisors, lenders and industry professionals, as well as market data.

Brand & Management Selection

We evaluate all hotel franchise brand options available and review capital requirements versus forecasted performance for each to determine optimal branding for the hotel. We then recommend the appropriate branding course of action based on this risk and return analysis.

The same critical analysis is completed in the management company selection process.

Personalized Engagement

Deutche Bank / Geoff Capital Hotel Loan Portfolio Review

Consulting services included operator review, valuation review and pro-forma projections of market performance, hotel value, lender metrics and long-term capital and brand outlook of assets as they related to a loan extension.

Chicago Cubs Wrigleyville Hotel

Consulting services included site layout, feasibility study, brand selection and negotiation, franchise selection and negotiation and alignment of hotel development with team and stadium operations.

Westin Dulles Airport

Consulting services included site identification, feasibility study, branding analysis and recommendation, franchise agreement negotiation and procurement of construction and operations financing.

Renaissance Convention Hotel Schaumburg

Consulting services included valuation, evaluation of joint venture and capital restructuring alternatives to provide funding for adjacent performing arts center development.

Historic Hampton Inn Freeport

Consulting services included procurement and negotiation of Tax Increment Financing (TIF), Historic Tax Credit, hotel restoration, re-branding, re-positioning and ongoing hotel operation.