Al Tamimi and Colliers launch hotel health check
Middle East expert law firm Al Tamimi & Company and real estate company Colliers International have joined forces to offer hotel owners, investors and financiers a new consultancy service aimed at valuing assets, driving profitability and minimizing risk exposure.
The hotel health check service – known as the adVANTAGE Report – will provide a critical asset management and legal overview of hotel assets, together with analysis of the underlying business and legal structure.
Industry and legal experts from both Al Tamimi & Company and Colliers International will analyse performance and valuation of hotel assets, financial indebtedness, existing corporate and asset ownership structures, management agreement key terms, critical third party contracts and particular risk areas.
The findings will be set out in the adVANTAGE Report, which is a framework for the owner, investor or financier to implement, designed to drive enhanced profitability and reduce risk exposure within today’s competitive market.
Tara Marlow, Head of Hospitality at Al Tamimi & Company said: “Following a turbulent time for the hotel industry across the MENA region, maturing markets and stabilization of many hotel assets, now is a good time for hotel businesses to consider whether they are best placed to successfully move forwards in a changing and competitive environment.
We are very pleased to collaborate with Colliers International on this new hotel health check initiative. It makes absolute sense to combine our legal and industry expertise and experience, to be able to provide our clients with cohesive commercial and legal advice.”
Colliers International’s Head of Hotels and Resorts, Filippo Sona, said that the service had been devised to tackle the issue of under-performing hotel assets in the Middle East. “With over 120 million hotel nights of hotel stay available per year, the MENA region is a significant global destination. The hotel sector across the region has seen a significant improvement on its position following the economic slowdown, however, with large hotel supply pipelines across borders, and source markets’ volatile economies, many assets are achieving below benchmark profitability in current market conditions.”