Real Estate Development Key Steps Hotel Projects GESIIC, Pantheon-Sorbonne, Paris January 25 th,...

Real Estate DevelopmentKey Steps

Hotel Projects

GESIIC, Pantheon-Sorbonne, Paris

January 25th, 2013

Yilmaz KARAUCGlobal Project Management

2

REAL ESTATE DEVELOPMENT PROCESS – KEY STEPS

AGENDA

Key Points

Overview of a development project key steps as Developer

Existing & Take-over projects key steps as Developer

Project Structures in following cases:– Hotel Operator is the Developer

– Hotel Operator leases or acquires after Completion

– Hotel Operator is only Hotel Manager

Questions

3

Key Points

In Real Estate Development Process the followings are crucial:

– Sequential process

– Deliverables

– Internal Validations

– Accountability

– Program Optimization

– Cost Certainty

in order to ensure project completion:

– within the Budget & Time

– and in compliance with the Product and Technical Guidelines.

4

Overview Of A Development Project Key StepsS

tep

s’ C

on

ten

tK

ey S

tep

s

Project Detailed Program

& PreliminaryStudies

2

1. Program analysis & optimization

2. Detailed Hotel Program

3. Base building Schematic Design

4. Interior Design Brief

5. List of proposed interior designers

6. Project Structure

7. Updated project cost plan & time frame

Program Committee

1. Project Delivery validation

2. Pre-opening phase

3. Hotel opening

Project Delivery& Hotel

Opening

5

Hotel Opening

Project Works

Execution & Follow-up

4

1. Design Development

2. Tender file

3. Tender for works

4. Beginning of Works

5. Execution studies

6. Mock up room

7. Execution of works

8. FF&E integration

Mock up Room

Handover

Project Assessment & Feasibility Analysis

1. Pre feasibility & Market overview

2. Preliminary Cost Plan

3. Site identification

4. Concept Design

5. Techn. Feasibility & Constructability Study (Technical File)

6. Initial Cost Plan

7. Business Plan

1

Development / Investment Committee

Project Final

Program & Detailed

Studies

1. Final version of the Program

2. Detailed Interior Design & Landscape drawings

3. Final Project Budget

4. Project time schedule.

Program Committee

3

Tender

Existing & Take Over Project Key StepsS

tep

s’ C

on

ten

tK

ey S

tep

s

Project Detailed Program

& PreliminaryStudies

2

1. Agreement for Acquisition

2. Program analysis & optimization

3. Detailed Hotel Program

4. Base building Schematic Design

5. Interior Design Brief

6. List of proposed interior designers

7. Project Structure

8. Updated project cost plan & time frame

Program Committee

1. Project Delivery validation

2. Pre-opening phase

3. Hotel opening

Project Delivery& Hotel

Opening

5

Hotel Opening

Project Works

Execution & Follow-up

4

1. Design Development

2. Tender file

3. Tender for works

4. Beginning of Works

5. Execution studies

6. Contractor Mock up room

7. Execution of works

8. FF&E integration

Mock up Room

Handover

Project Assessment (DD & PIP) & Feasibility Analysis

1. Pre feasibility & Market overview

2. Site Identification

3. Preliminary Business Plan

4. MoU / Due Dilig.

5. Property Improvement Plan

6. Concept Design

7. Techn. Feasibility & Constructability Study (Tech. File)

8. Initial Cost Plan

9. Business Plan

1

Development / Investment Committee

Project Final

Program & Detailed

Studies

1. Work Permit & Acquisition

2. Final version of the Program

3. Detailed Interior Design & Landscape drawings

4. Concept Mock up Room

5. Final Project Budget

6. Project time schedule.

Program Committee

3

Tender

6

HOTEL OPERATOR IS THE DEVELOPPERProject Structure

OWNER’s Representative (Secondment Agreement)

Third PartyTechnical Inspection

Project Management Team

Project ManagerCommercial Manager

Design ManagerLogistics Manager

Time SchedulerH&S Manager

Document Controller

Civil Engineer

Main-Contractor

PROPERTY OWNERSHIPCOMPANY

Hotel Consultant

Suppliers

Assistant to Owner (AMO Contract)

TYPICAL PROJECT STRUCTURE / SUBSIDIARY or J.V.

Local Technical Department

Brand Standards

I&D Interior Design Validation

OperationsCoordinator

FF&EProcurement Agent

Sub-contractorsFF&E, EQT, OSE

Installation

Contractual only

Management only

Relational

Product Interior Designer

Interior DesignerDecoration

Architect

Fire Safety Consultant

MEP Engineers

IT/VDI Engineer

Kitchen Consultant

Lighting Designer

Elevator Consultant

Cost Consultant

Contractual & Management

Façade Consultant

Signage Consultant

Sub-contractorsTrade Package

Works

Technical Due Diligence

(if Renovation)

DiagnosticsAsbestos & Lead(if Renovation)

Waste & Rain waterpipes diagn. (if Renovation)

HotelBrand

HOTEL OPERATORBusiness Unit

Lease Contract

SteeringCommittee

HOTEL OPERATORInvestment Funds

THIRD PARTYInvestment Funds

F&B ConceptAssistance

Spa ConceptAssistance

IT SupportHES Coord

ProcurementProperty Mngr

Hotel Operator Involvement in Management

Hotel Operator Involvement in Management (Optional)

Surveyor / Geometre

Hotel Financing, Development & OperatingProposed International Scheme

HOTEL GROUP WORLDWIDE

LOCAL HOTEL INVEST. & OPERATING

CO.

100%

LOCAL HOTELOPERATING & DEVELOPMENT

JOINT-VENTURE CO.

LOCAL PARTNER INVEST. & DEVELOPMENT

CO.

51% 49%

HOTELProp Co

HOTELProp Co

HOTELProp Co

HOTELOp Co

HOTELOp Co

HOTELOp Co

100%

Lease Contracts

Management ContractLicencing AgreementTechnical Assistance

100%

LOCAL BANKLoans Agreement35 / 65 (equity / debt)

Construction ContractsAsset Management

8

HOTEL OPERATOR LEASES / ACQUIRES AFTER COMPLETIONProject Structure

OWNER’s Representative Program Manager




Design ManagerLogistics Manager

Time SchedulerH&S Manager

Document Controller

Civil Engineer

Main-Contractor

PROPERTY OWNERSHIPCOMPANY (POC)

Hotel Consultant

Suppliers


TYPICAL PROJECT STRUCTURE LEASE / ACQUISITION


Brand Standards





Installation

Contractual only

Management only

Relational



Architect


MEP Engineers

IT/VDI Engineer

Kitchen Consultant

Lighting Designer

Elevator Consultant

Cost Consultant


Façade Consultant

Signage Consultant


Works


(if Renovation)



HotelBrand


Agreement for Lease

SteeringCommittee





IT SupportHES Coord


POC Acquisition Agreement


HOTEL OPERATORInvestment Funds

Surveyor / Geometre

9

HOTEL OPERATOR LEASES AFTER COMPLETIONProposed Lease Structure

Services

Fixed Rent

Opex by Tenant

Total Cost of Ownership

Proposed Lease Classic Lease End-User

Tenant Benefit Combined benefits

Saving share

Total Cost of Occupancy

Variable Rent

10

HOTEL OPERATOR IS ONLY HOTEL MANAGERProject Structure

OWNER’s Representative Program Manager




Design ManagerLogistics ManagerTime SchedulerH&S Manager

Document Controller

Civil Engineer

Main-Contractor

PROPERTY OWNERSHIPCOMPANY

Hotel Consultant

Suppliers


TYPICAL PROJECT STRUCTURE / HOTEL MANAGEMENT AGREEMENT


Brand Standards





Installation

Contractual only

Management only

Relational



Architect


MEP Engineers

IT/VDI Engineer

Kitchen Consultant

Lighting Designer

Elevator Consultant

Cost Consultant


Façade Consultant

Signage Consultant


Works


(if Renovation)



HotelBrand


Lease Contract

SteeringCommittee





IT SupportHES Coord


HOTELTRADING CO.

Hotel Management Contract


Surveyor / Geometre

11

END

THANK YOU

Contact : Yilmaz [email protected]

Real Estate Development Key Steps Hotel Projects GESIIC, Pantheon-Sorbonne, Paris January 25 th,...

Documents

Transcript of Real Estate Development Key Steps Hotel Projects GESIIC, Pantheon-Sorbonne, Paris January 25 th,...