Market Feasibility Studies:

Hospitality developers, owners, management companies and investors rely on Pinnacle Advisory Group for assistance with all aspects of market feasibility. Through primary market research, Pinnacle gauges the market demand of the development of a hospitality facility. Our review of the market area is supplemented by comprehensive research which is translated into projections of market performance. The competitive advantages and disadvantages of the proposed or existing property are weighed relative to other properties in the market. Comprehensive narrative reports are presented and are frequently utilized by third parties for the purpose of securing mortgage financing and/or equity participation. Additionally, these reports can also be used in lease negotiations and management or franchise agreements.

Operational Analyses:

Operational analyses may be limited to a single aspect of a facility's performance (e.g., labor productivity, marketing plans, etc.), or it may encompass its entire operating procedures and results. Typical reviews evaluate management, internal controls, pricing strategies, marketing plans, guest satisfaction, physical plant maintenance, operating costs and financial results. Reports contain our findings and recommendations for modifications to improve profitability including among others: organizational changes and realignments, improvements to systems and procedures, tighter management policies and controls.

Development Services:

A variety of services are provided to evaluate the market and/or economic viability of a new development or an acquisition of a hotel. These services include site selection, market analysis, facilities planning, franchise selection, management recommendations, market share estimates, cash flow projections, and recommendations for ownership structure.

Franchise and Economic Impact Studies

Economic impact analyses gauge the direct and indirect benefits that result from the construction and operation of a hospitality facility. These include the influence of visitor spending, job creation, the effect on area businesses' sales volume, increases in personal income and tax revenue. The report measures each of these factors individually and distinguishes between temporary and permanent impacts.

Franchise impact studies analyze the effect on a hospitality facility's revenue when an affiliated franchise enters the market. Impact studies of this nature outline both the base and incremental impact of additions to supply in an existing lodging market. Pinnacle Advisory Group's extensive research and published articles on this topic have made it an authority in the field.

Valuations, Evaluations and Financial Projections

Due diligence, valuations and evaluations for portfolios ranging in size from five to 50 properties. These analyses have been conducted for properties located in major markets in the United States, frequently while under stringent time constraints. Financial projections are also provided based on multiple assumptions such as renovations and operating or ownership returns.

Representative Client List

• Commonwealth of Massachusetts
• The Carlyle Group
• Fidelity Real Estate Investments
• Garfield Traub Development
• Massport Authority
• New England Development
• Northland Investment Corporation
• Olympus Real Estate
• Starwood Hotels
• Trinity Hotels