“In the New York office alone,” Rushmore explains, “we were engaged in more than 700 consulting and service assignments, exceeding 2005’s total of just fewer than 650, and 500 the year before.”
“There were several trends we experienced that guided the activity levels in 2006,” explains Rushmore. “First, the hospitality industry is experiencing a period of high growth throughout the world. Many HVS clients are participating in this growth by expanding their operations utilizing our global expertise and seamless worldwide coverage. Second, with the cost of capital at an all-time low in many regions of the world, HVS is instrumental in helping investors and lenders leverage their asset’s value through capital refinancings. Additionally, HVS continues to offer unsurpassed client service and industry expertise focused on creating value for our clients.”
“We see this growth continuing into 2007 and beyond, as global economic conditions maintain an upward trend, thereby fueling the opportunities for business and leisure travelers to stay in hotels and resorts around the world,” continues Rushmore. “This in turn creates further opportunities for investors, developers, and operators to boost their respective interests, and for our HVS services to help them achieve these objectives.”
We Cover the World:
- HVS New Delhi celebrates ten years of operations in India. In addition to offering feasibilities and valuations, this office has become the resource for anyone pondering hospitality investment opportunities in South Asia. The HVS Executive Search service in New Delhi also continues to expand as it also offers searches in real estate and other service sectors.
- HVS International had an exceptional year servicing clients in Mexico and Central America, with more than 30 assignments in that region.
- In the United States, HVS Atlanta was launched in 2006 and has already been active with appraisals and feasibility studies. HVS San Francisco coordinated the appraisals of 14 destination resorts and hotels in North America, the Caribbean, and Mexico for a major transaction in 2006, and the office also continues to strengthen its work with condominium hotels and mixed-use developments with “for sale” components, performing such assignments in Arizona, Hawaii, Oregon, and California.
- The London office also had a record year in 2006, advising on over 250 assignments, including many portfolio transactions, such as Host Hotels’ acquisition of six European hotels from Starwood, the acquisition of 24 hotels by Westmont from InterContinental Hotel Group (IHG), and the Hospitality Europe portfolio. In the emerging markets of Croatia, Russia, and other Eastern European countries, HVS London advised clients on projects ranging from all-inclusive resorts to five-star deluxe hotels and serviced apartments. Assignments were also conducted in Armenia, Dijbouti, Kazakstan, and Mauritius. In the United Kingdom, HVS advised many clients seeking to develop the Staybridge Suites brand from IHG and also provided advice to Yotel on its developments at Heathrow and Gatwick.
- In the Middle East, 2006 proved to be another successful year for HVS London, with significant activity in the United Arab Emirates, particularly Dubai and Abu Dhabi, as well as in Bahrain, Qatar, and Oman. HVS was involved with several large projects in and around Manama, in the Burj Dubai area in Dubai, as well as for the Dubai marina and several significant projects in Abu Dhabi, such as Central Market and Al Raha. HVS also successfully negotiated several operator searches in the Middle East, including for the W resort on Palm Island, Jumeirah’s Acqua Dunya resort at Dubailand, both in Dubai, and for a Banyan Tree hotel in Abu Dhabi.
- In 2006, HVS Shanghai advised on hotel, resort, and serviced-apartment projects in 19 markets throughout China, including Beijing, Shanghai, Tianjin, Hangzhou, Suzhou, Guangzhou, Hainan Island, Kunming, Hong Kong SAR, and Macau SAR.
We are the Industry Leaders in Worldwide Hospitality Investment Conferences:
- Throughout the world, HVS executives are stalwart supporters, sponsors, and speakers, participating in major international hotel investment conferences in New York, Los Angeles, Berlin, Rome, Dubai, and Hong Kong, to name a few. In addition, we are instrumental in developing new conferences, particularly in emerging markets.
- For example, New Delhi’s office coordinated the second Hotel Investment Conference for South Asia (HICSA) in the spring of 2006, and plans are already underway for the third annual meeting to be held in Mumbai in April. At least ten global CEOs from various hospitality groups have already confirmed attendance.
- HVS’ Singapore office co-hosted the second annual China Hotel Investment Summit (CHIS) in April 2006, attended by over 450 delegates from 22 countries. The next CHIS, to be held at the Grand Hyatt Shanghai on April 18-20, 2007, will feature distinguished speakers from international hospitality academia, leaders of the global hotel industry, and Asia’s Who’s Who sharing their insights regarding the market trends and investment and development opportunities in China and regionally.
HVS Has the Expertise:
- The Marketing Communications service handled the public relations efforts for several independent and branded hotels in the U.S., as well as for convention bureaus and hospitality companies, while assembling the sales and marketing plans and brochures for various limited-service, full-service, and conference center hotels throughout the country. Additionally, the Marketing Communications team served as interim director of marketing for two full-service conference center and meeting hotels in New York and Connecticut. HVS Marketing Communications continues to be rehired by its previous clients for continuing work, not only with sales support and guidance, but also with setting service standards and training, in particular for independent hotels.
- Starwood Hotels & Resorts and Marriott International engaged HVS Restaurant Management & Advisory Services for two challenging projects. With Starwood, HVS developed concept and standards documentation for internally created signature restaurants to be franchised throughout the United States. HVS performed a detailed time and motion study for Marriott as well as an analysis of the company’s room service operations and made recommendations as to how Marriott can improve execution and profitability at its full-service hotels.
- HVS Asset Management & Strategic Advisory Services was selected by the City of Indianapolis to facilitate and oversee the selection process to identify the developer, brand, and manager for a new 800- to 1,000-room convention center headquarters hotel, which is scheduled to open in conjunction with the opening of the 500,000-square-foot convention center expansion.
- Our Golf Services had a banner year, performing an appraisal of the legendary Pinehurst Resort, as well as providing economic planning and appraisal services for luxury resort real estate developments, including the $800-million Long Beach Oceanfront Golf Resort on Vancouver Island in Canada, and the $4-billion Kapalua development on the island of Maui.
- Some of the marquee projects for HVS’ Shared Ownership Services division in 2006 included:
- Feasibility consulting for a $1-billion project to be built in Dominica in the Caribbean. This effort also involved our Golf Services division. The property was the site for the filming of Pirates of the Caribbean 2 and 3 (which will be released in 2007);
- Hotel and condominium hotel consulting and valuation services for a planned luxury resort hotel in the Turks & Caicos Islands. The first phase of the resort is expected to open in late 2009;
- Valuation services on the condominium hotel component of the Plaza Hotel redevelopment in New York City.
- Consulting and valuation services for branded residences and a fractional-based residence club at a high-end hotel in Scotland;
- Feasibility and valuation services for proposed luxury branded residences at a castle in Scotland;
- Consulting and research services for proposed luxury residences in Tuscany, Italy; Almeria, Spain; and Dubai, among others.
- HVS/Ultimate Hotel Parking Solutions expanded its service offering to include parking facility valuation, feasibility, and development planning services. This capability enables the firm to offer comprehensive parking consulting services to prospective buyers, sellers, developers, and lenders. This new service line is especially appropriate for mixed-use developments where a parking facility is often a critical component to the overall project. Marquee projects for this division included Marriott Vacation Club International’s Aruba Ocean and Surf Club timeshares resorts in Aruba; Wood Partner’s Trump Tower in Atlanta, Georgia; and Destination Hotels & Resorts Terranea Resort in Rancho Palos Verdes, California.
- The Executive Search team of HVS International enjoyed a year that surpassed 2005 revenues by 20%. The group completed more than 200 searches worldwide for organizations in the hotel, casino, and restaurant industries. Clients in 2006 included Mandarin Oriental, Hilton, Hyatt, Oberoi, Fairmont, Wynn, Kerzner, Applebee’s, Morton’s, and Qdoba. Throughout the global reach of HVS Executive Search, marquee placements of executives were made in companies including Foxwoods, Hooters, Armani, Jin Jiang, and Emaar India. HVS Executive Search also added a Russian specialist to its team in advance of the 2007 opening of its Moscow office.
- HVS Hodges Ward Elliott had its strongest year ever, participating in hotel transactions totaling more than €350 million. Landmark deals included the sale of the two largest hotels in St. Petersburg, Russia, with 2,000 rooms combined for a total price of more than U.S. $160 million.
- HVS Food & Beverage Services had an outstanding year in 2006, highlighted by performing appraisals of Cipriani 42nd Street and Cipriani 55 Wall Street for Deutsche Bank and the proposed Trump on the Ocean catering facility/restaurant and nightclub at Jones Beach State Park for North Fork Bank. In addition, Richard D. Williams received the MAI designation from the Appraisal Institute in April 2006.
- HVScompass Interior Design is currently designing a prototype hotel for Hilton Garden Inn International, the first of which will be in India; plans are for the new concept to be used in China as well as in other countries. The company is also designing the interior for a new resort in Bermuda. In the United States, HVS Compass is active with the interior design for a new Hilton in Richmond, Virginia, a boutique hotel in Winchester, Virginia, due to open in April 2007, as well as numerous renovations around the U.S., including Marriotts, Crowne Plazas, and Hyatts.
- HVS Convention, Sports and Entertainment Facilities Consulting performed studies for some of the major convention centers in the world, including a tax study for expansion of the Javits Center in New York, a feasibility and planning study for expansion of the Hyatt at McCormick Place in Chicago, and a market study of the convention and exposition industry in Sydney, Australia. The team also worked with HVS’ London office in appraising a major hotel and convention center in Berlin, Germany.
- HVS Gaming Services continues to expand its international expertise, completing several assignments in Macau and one in Moscow.
- HVS/American Hospitality Management Company was involved in numerous challenging assignments in 2006 that included:
- Assuming the management of Ramada Mall of America, adjacent to both the Mall and the Minneapolis-St. Paul International Airport;
- Opening two Country Inn & Suites hotels (Virginia and Kentucky);
- Temporarily managing Houston’s Hotel Icon while the hotel was between owners;
- Completing Operational Reviews (in conjunction with HVS’ Restaurant Management & Advisory Services) of three hotels operated by InterContinental Hotels on behalf of the Cleveland Clinic on its main campus;
- Undertaking the asset management of the exclusive Fisher Island Club’s Hotel & Resort in Miami Beach; it also handles this service for the Sagamore Hotel in Miami and the Balsams Grand Resort Hotel in New Hampshire.
About HVS:Established in 1980, HVS International’s experts literally wrote the book on how to value hotels, timeshares, restaurants, and more. Hotel owners, operators, lenders, banks, and management companies all turn to HVS as the respected authority on hospitality. We possess detailed knowledge and experience in the markets where we have a presence and the regions in between. Whatever the real estate or consulting need, HVS associates possess experience in a wide range of hospitality and operational disciplines. Our entrepreneurial mindset and company-wide philosophy allow us to think as if we were owners and operators ourselves. We know this approach best suits our clients’ needs.
For more information, contact:
Phone: +1 516 248.8828 x278