Acquisition Due Diligence


Success in long-term investment management is premised by the thorough consideration and evaluation of potential hotel purchase decisions. Independent investment analysis, research and due diligence are core services offered by FA Hospitality.

We support the entire acquisition process, focusing on the critical elements designed to determine if a property meets the client’s strategic investment goals. Our investment underwriting begins with a thorough market analysis and asset assessment, includes recommendations for improvement, an assessment of the underlying economic strength of the area, capital needs, financial projections, and return analysis. Once complete, our clients are able to determine whether or not the acquisition is the right venture for their company’s investment parameters.

FA Hospitality’s depth of knowledge and experience can be applied to:

■ Property and investment level underwriting

■ Preparation and presentation of investment plan and recommendations

■ Negotiation of purchase and sale agreements

■ Management and franchise selection/assumption and contract negotiation

■ Evaluation of a Performance Improvement Plan (PIP)

■ Assistance with the debt financing process

■ Preparation of financing memorandums

■ Management of the due diligence process

■ Accounting and IT systems reviews

■ Assistance with the structuring of entities and respective bank accounts

■ Preparation of closing statements

 

Upon transaction close, FA Hospitality provides the following services required to manage the transition process:

■Assistance with fulfilling post-close requirements

■Overseeing the operator transition process

■Asset plan execution (i.e. PIP, renovation, repositioning, hotel re-branding, etc.)