CONCEPT PLANNING           FEASIBILITY ASSESSMENT           DEVELOPMENT MANAGEMENT

Development Management & Concept Packaging

The REVPAR Advisory Group focuses on concept packaging and development management. By creating an investment ready development concept package that is attractive to investors we can secure funding and make the clients dream project a reality. We then work with the syndicate partners managing the development and ongoing asset management compliance as per requirements. 

REVPAR Development Management Services involves working with the client team to conceive, package, fund, design and construct viable development projects on time within budget and launched with fanfare and ultimate success.

Summary of the process includes:
 
• Conceptualization and “best use” strategies
• Feasibility and market assessment
• Financial engineering and strategic planning
• Investment attraction and sourcing capital
• Acquisition identification and negotiation
• Master planning and architectural design coordination
• Development management and cost control
• Operator selection and implementation
 
Projects include but are not limited to hotels, private homes, golf courses, resorts, recreational, commercial and retail centres.  Below are a sample of the post development advisory projects we have recently performed. For further information please contact our advisory team on enquiries@revpar.com.au. 

Master Plan, Due Diligence and Financial Modelling

Council Resort Development

The REVPAR Advisory Group is often contracted private developers and city councils to review their development plans and advise on ongoing capital works programs. An example of one project involves the provision of development advisory services to a NSW city council regarding the current and future potential of re-developing a 4.5 star Coastal Resort. REVPAR was contracted to provide “business cases” on current development scenarios along with optimal future development scenarios with financial models.

With the business in the red and large amounts of capital already invested – the Council called on REVPAR to provide full range of options to ensure sunk costs were recovered and the business was able to generate sufficient revenues to allow a sale in the future.

Key Objectives undertaken by REVPAR included;

The Market

1. Analysis of the current and future business trends including financial potential
2. Undertake market analysis including possible marketing strategies
3. Analyse the competitive standing in the marketplace
4. Review guest demographics – existing and potential new markets
5. Consider potential for food and beverage operations
6. Consider the need for guest access to IT and other technology infrastructure
7. Review human resources i.e. staffing levels inclusive of all options
8. Undertake a “SWOT” analysis for each option presented
9. Review the naming and branding of the Resort
10. Propose business development strategies

The Development

1. Review the current development approval including remaining stages and potential alternatives
2. Review present and forecast future occupancy trends against possible development option scenarios
3. Provide full set of financials including cash flow and P&L’s for each scenario.
4. Identify an average breakeven rate with forecasted revenues including inflation
5. Assess income streams – current and potential
6. Review operating cost including loan and lease obligations
7. Provide test cases for additional investment – staged development

REVPAR worked with the council to provide a detailed set of recommendations for the ongoing development that took into consideration not only market demand for the product, but compounding annual losses and limitations on capital available for the project.

REVPAR was also able to “think outside the square” and provide five (5) development scenarios ( with financial models) that would allow the business to reach profitability and provide a measurable return on investment (ROI). When REVPAR arrived the business was valued below replacement costs due to recurring annual losses – with REVPAR recommendations the business was able to recover sunk costs, provide an annual recurring income for the council and establish a solid business to be on sold in the future.

Coastal Caravan Park Strategic Business Development Plans ( syndicate of 4 properties) 

REVPAR was recently contracted by a Victorian Council in a coastal location that owned multiple Caravan Parks to advise on how to improve the financial performance of the venues through capital works programmes and strategic business development plans for each park. Each Business Development Strategy Plan specifically covered the following items:-

1) Safety and regulatory compliance
2) Improvement in environmental performance of the park
3) Development of new facilities to meet market requirements
4) Staged investment and a Capital Works Programme
5) Improvements to Customer Service
6) Revenue projections for commercial operations

With minimal investment over previous 10 years the park owners needed  to invest in infrastructure. However unlike onsite or value add services; Infrastructure would only provide limited revenue growth moving forward and therefore the owners would fail to recover sunk costs.

To solve the problem REVPAR designed a capital works program that took into consideration not only infrastructure upgrades but also included revenue generating investments that would ensure sunk costs were recovered over the life of the plan.

REVPAR was able to assist in the funding of investments at a competitive rate, thus ensuring 10 year forecasts were commercially realistic and able to be delivered.

REVPAR Advisory Group is able to partner developers in this pursuit both financially and strategically. For more details including case studies and supporting financials please contact Managing Director - Michael Gillis on m.gillis@revpar.com.au.