You have likely heard the phrase “due diligence” from your California real estate attorney. This concept means the efforts that must be employed in order to help you determine if you are about to make a good deal or not. This process can help highlight risks that you had not imagined as well as potential benefits. However, attorneys do not deal with the daily operations of the hotel, as a firm that specializes in hotel development consulting in California does. By adding a firm that focuses on hotel development consulting in California to your research team, you can rest assured that you have assembled a competent team to represent your interests.
When purchasing an existing hotel or considering building your own, a consulting firm can help assess the potential profits that can be gleaned from the project. A careful analysis of financial documents can help discover the strengths and the weaknesses of the business, such as a solid earnings history or difficulty retaining a stead workforce. Consultants can view general financial documents, including profit and loss statements, balance sheets and tax returns. They can also review information that may significantly impact the business, such as proposed changes to zoning laws, the government’s use of eminent domain in the area and proposed areas for new development.
Although consultants are not lawyers, they can provide useful information about the hotel’s legal history. They can review if the hotel development has been the target of lawsuits or if it has not complied with local and state laws. With a unique perspective, hotel consultants can provide advice about conditions and contingencies that should be included in development contracts. They also know the major players in the market and may be able to help forge new business relationships between them or highlight potential risks of the competition.