Hospitality
TerraPrima focuses on aiding hotel owners, real estate developers, and high net worth clients to develop growth strategies, locate investors, and expand their businesses through operator search, asset development, and other strategic partnerships. Through our teams located in Gurgaon and Hyderabad, we collaborate with top industry experts to serve your business. Drawing on our nuanced understanding of the industry and detailed inputs from clients, we create tailored strategies that address the unique challenges each business faces.
Objectives
TerraPrima believes in full control of a project for better customer and promoter support throughout the stages of discovery and construction. We look to achieve the following goals with our clients.
Objectives
Terraprima believes in full control of a project for better customer and promoter support throughout the stages of discovery and construction. We look to achieve the following goals with our clients.
Feasibility Study & Report
Secure Project Financing and Establish Relationships
Determine the Operating Model
Operator Search
Negotiation and Deal Closure
Finalise Concept & Schematic Design
Detail Design & Technical Specifications
Feasibility Study & Report: Complete an appropriate feasibility assessment to highlight all site development options within the ecosystem, a detailed area statement of the proposed property, and a comprehensive forecasted P&L taking predicted occupancy, ADR, and costs into account.
Secure Project Financing and Establish Relationships: seek out suitable financial partners that align with the promoters’ goals and financial interests.
Determine the Operating Model: The hotel’s appropriate management model, especially for first-time owners (owner-operated, managed, leased, etc.) will be decided upon in accordance with the forecasted P&L.
Operator Search: Selecting the most appropriate hotel brand that meets the necessary requirements and complements the ecosystem.
Negotiation and Deal Closure: Shortlisting based on the necessary selection criteria, pursuing the deal to close while negotiating on the promoters’ behalf.
Finalise Concept & Schematic Design: Oversees the completion of conceptual drawings and schematic design for the developer and operator’s final approval.
Detail Design & Technical Specifications: Analyzing benchmarking and shortlisting various technical consultants and brand standards required.
Approach
At TerraPrima, we are confident that the knowledge we have acquired through years of experience and rigorous research adds value. The methodology is very practical and shortlisting various technical consultants and brand standards required places development at the centre of all endeavors. To ensure that a comprehensive understanding of the project is formed, we adhere to the methods listed below.
Site Visit & Familiarisation
Concept Planning
Feasibility Study or Techno-Commercial Feasibility Report
Operator Search
Site Visit & Familiarisation
The overall development potential and the ability of a property to perform consistently over the long term can be directly impacted by the site location, orientation, visibility, and accessibility of that property inside a particular key demand region. The site/property will be thoroughly surveyed at this phase in order to determine the land's highest and best usage as well as its suitability for the proposed form of development. Additionally, the physical orientation of the property in relation to the regions of local demand will be examined. Furthermore, we will conduct a physical inspection, assess the market orientation of existing and proposed projects in the market area, decide whether they are competitive with the proposed projects, and gain a thorough understanding of their performance, demand segmentation, feeder markets, and customer demographics, as available. Overall, the site visit enables the following to be determined:
=> Potential USP's (Unique Selling Points) for the project
=> Market Positioning of the property
=> Phasing plan which creates the best sustainable business model
=> Review of development costs and financial feasibility
Concept Planning
By reiterating the idea behind the development, the familiarisation is further strengthened. We start out by looking for opportunities and important components for the project while also identifying potential problem areas that could affect its feasibility. Using frameworks like the SWOT Analysis to conduct a quick feasibility assessment will help us better understand and estimate factors like
=> Proposed positioning
=> Facilities mix
=> Development of various project components and a proposed revenue centers
=> Required financial considerations to complete the project
Feasibility Study or Techno-Commercial Feasibility Report
A feasibility report combines the conclusions, suggestions, and interpretations from the preceding two steps with a thorough market area analysis, a review of travel and tourism-related developments, market segment growth trends, and forecasted demand-supply scenarios to determine the potential of a proposed hotel or hotel development to gain market share and generate revenue. The feasibility study will also conduct a
comprehensive financial validation of the project proposal and, as a result, contain
suggestions on the following
=> Hotel Market Overview & Competition Mapping
=> Proposed Facilities Plan,
=> Development Strategy
=> Demand Validation-Projection of Occupancy & Av. Daily Rate (ADR)
=> Projection of Expenses and Revenue-Rooms, MICE, F&B, etc.
=> 10-year P&L Projection
=> Rol Analysis - Development Cost Estimates, IRR Analysis
This report serves as the main ticket and focal point for all ongoing and upcoming talks involving the property. This document is typically used by investors, bankers, hotel chains, operating partners, etc. to get detailed information about the property. While being exhaustive, the report will outline in detail the goal and opportunities associated with the development of the property. It will also provide pertinent historical information so that all readers can understand the project’s context.
Operator Search is a service offered to hotels and other asset owners looking for a management or franchise agreement. It involves the identification and negotiation of potential Domestic and International operators for the proposed development. To ensure that decisions are made quickly and with clear objectives, we typically concentrate on three operators out of the diverse group that the hotel may draw
=> Identification: of an operator would begin with TerraPrima presenting an overview of the recently completed project feasibility report.
=> Framework: In consultation with the promoters, TerraPrima establishes a framework with the following goals
=> The BEST Deal, Period!: TerraPrima is a brand-neutral consultant. The hotel operator must truly fit both culturally and economically. It ought to be compatible with the prospective hotel owner's vision.
=> Add Real Commercial Value: We believe that the development should produce financial benefits for the promoters within a predetermined time period. For the transaction to be successful in the long run and last, it should be mutually beneficial.
=> Cut the NOISE, focus on concise deliverables that matters most: As consultants, it is still our goal to keep things simple and laser-focused on providing the most value. International hotel brands have strong reputations and a lengthy list of requirements. Brand standards, IT infrastructure, FF&E and a variety of costs listed under headings such an incentive fee, hotel construction costs, marketing costs, etc. We assist you in sifting through the jargon to determine what matters most and how much you should be prepared to invest on it.
=> Deliverables: At the conclusion of this process, TerraPrima will have produced the following deliverables for the promoters
--LOI and Term Sheet from a Shortlisted Operators
--Signing up with operator of choice
Concept & Schematic Design
TerraPrima will oversee the completion of conceptual drawings and schematic design of the project, as submitted by the project architect for the promoter's and operator's approval, including final master planning, floor plans, elevations, buildings, systems, public areas, facilities, shops, back of the house planning and operational flowchart to be given in the hotel conforming to the agreed standards between the promoters, operator, and TerraPrima.
Detail Design & Technical Specifications:
TerraPrima will take part in picking the expert consultants (M&E, Kitchen, Lighting, Spa, etc.). In order to prepare and approve the construction drawings necessary for the preparation of the tender documents or direct contractor negotiation, TerraPrima shall review and comment on all detail designs and other recommended processes as prepared by the Project Architect and other appointed consultants, engineers, intenor designers, decorators, and other specialists. In addition to reviewing the planned construction designs to make sure that all specified requirements are followed, TerraPrima is required to supply the comprehensive specifications needed for the Fixtures, Furniture & Equipment (FF&E) requirement, safety standards, and operation of the Project. TerraPrima won't be held personally accountable for any recommendations made by these specialised experts, though