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Lodging Property Positioning Check

Project AVE excavates and realizes potential values of small and medium lodging properties in Korea, by enhancing productivity, efficiency, stability and liquidity of the assets.

Currently, the main service is the Lodging Property Positioning Check, evaluating productivity, efficiency, and stability of lodging properties to quickly identify opportunities for optimal positioning, as follows:

Productivity Check

We identify the achievable revenue mix of a property within its competitive market and develop an enhancement strategy.

Efficiency Check

We identify the achievable cost structure of a property within its competitive market and develop an enhancement strategy.

Stability Check

We analyze volatility in operating cash flows of a property and identify opportunities for improvement in capital structure.

Service Standards

The service is provided, pursuant to the following standards:

  1. Service is available for properties whose actual financial data is provided by the client or the estimated financial data exists in HBI Dashboard.
  2. Analysis is based on actual data provided by the client, but the estimated data of HBI Dashboard will be used if no actual financial data is provided.
  3. Competitive properties are selected by HBI Dashboard algorithms, and their financial data will be sourced from the HBI Dashboard.
  4. Actual financial data from the client will not be distributed to third-parties or listed on the HBI Dashboard without prior approval of the client.

Service Delivery

The lodging property positioning check service is provided offline under a separate agreement. An agreement will be sent via e-mail when the commission is confirmed, and the service will start as soon as we receive the agreement signed as guided in the e-mail.

The report is typically delivered in seven days after the necessary data are obtained. However, the duration may be extended, if non-room facilities are large and complex, such as conventions, casinos, or hot springs.

Service Charges

The charges for the lodging property positioning check service are based on the size of the property, but the minimum and maximum fees apply as follows:

ClassificationBasisMinimumMaximum
Service Charges
(VAT to be added)
KRW 250 K/roomKRW 5,000 KKRW 50,000 K
(Under 20 rooms)(Over 200 rooms)

Detailed Due Diligence

The lodging property positioning check is not a detailed due diligence for property transactions but a tool to quickly determine the competitiveness of the property using available data and finding opportunities for improvement. However, the detailed due diligence service may be provided under a separate agreement, if the client requires after receiving the report. The client shall understand that it requires various experts in various practices to participate, and Hotelysis may recommend experts in certain areas.

In addition, the lodging property positioning check service is provided to improve the financial healthiness of currently operating lodging properties, and this does not apply to business strategies for newly developed lodging properties. The main difference is whether there are defined variables that affect the property's operating performance. However, the business strategy service for newly developed lodging properties can be provided under a separate agreement, and please contact advisor@hotelysis.com for further details.