Financial
Financial
FINANCIAL
DWS provide a range of financial services for clients in the hospitality, gaming and leisure sectors. These services include:
We have over 20 years of consulting experience relating to our financial services and have developed strong and credible relationships with major funding institutions. DWS can manage financial projects from conception to completion, maximising relationships and our insight to ensure swift and positive outcomes.
Our financial projects include clubs, taverns, accommodation, casinos, fitness clubs and other leisure and tourism development projects. Recent financial services projects include:
- Acquisition of a mix of development finance and grant funding for the reconstruction of major clubs.
- Feasibility study undertaken for the development of a 60-bedroom Mercure hotel in Gladstone.
- Operations review and business plan undertaken for a group of five clubs in Canberra.
- Feasibility study undertaken for the development of a health club in Moorebank, Sydney.
- Internal benchmarking analysis undertaken for a major national hotel group.
- Commencement of a risk assessment for the development of serviced apartments in Cairns.
DWS is ideally placed to assist with financial projects and would welcome the opportunity to discuss the next redevelopment, expansion or review of operations.
FEASIBILITY STUDIES
Management Feasibility Studies
DWS has extensive experience in managing feasibility studies and fully understand the risks and opportunities that are present in the hospitality arena. We provide feasibility assessments whether considering a new-build or redevelopment opportunity. Our feasibility studies incorporate the following elements:
- Site visit and primary research interviews.
- Population and demographic analysis.
- Project development proposal.
- Assessment of historic financial and operational performance.
- Profit and loss projections.
- Market and regulatory risk assessment.
- Cash flow analysis.
- Associated debt capacity and financial covenant analysis.
The outcome of our feasibility studies are comprehensive, credible reports that can be utilised in the pursuit of funding and as a business planning tool. With a mix of operational and commercial property development skills in the hospitality, leisure and tourism sectors, the DWS team are ideally placed to undertake feasibility studies on the request of developers, operators and by referral from commercial lending institutions.
FUNDING MEMORANDUMS
New Build or Redevelopment
We have developed strong relationships with funding institutions in the hospitality sector and can assist in the pursuit of finance applications for new-build or redevelopment projects. Our funding memorandums include the following elements:
- Initial high-level debt capacity assessment.
- Background market and financial assessment.
- Business case development.
- Identification of risks.
- Business case profit and loss projections.
- Cash flow and banking covenant analysis.
- Presentation to funding institutions.
Following our initial debt capacity assessment, we advise up-front on the prospective viability of the project before proceeding with the full memorandum. Our credible relationships with major lenders to the hospitality sector provide us with a strong advantage in the assessment of such projects.
PRE-LENDING ASSESSMENT
Strong Relationships
DWS have strong relationships with funding institutions to the hospitality sector and can assist in the pursuit of finance applications for new-build or redevelopment projects. Our pre-lending assessments include the following elements:
- Identification of risks.
- Market and financial assessment.
- Business case assessment.
- Business case maintainable earnings.
- High-level debt capacity assessment.
We advise up-front on the prospective viability of the project before developing full profit and loss projections. Our credible relationships with major lenders to the hospitality sector provide us with a strong advantage in the assessment of such projects.
OPERATIONAL REVIEWS
Knowledge of Hospitality Business
We have developed expert knowledge of businesses that operate in the hospitality sector as well as access to benchmarking databases that ensure that comprehensive operational reviews are undertaken. Given our experience in the hospitality sector, we add significant value over and above standard benchmarking as our understanding of local markets assist our review process. Key elements of our operational reviews include:
- Detailed assessment of historic financial and operating performance.
- Benchmarking of performance to industry peers and best practice.
- Review of management practices.
- Identification of poor performing profit revenues, cost of sales, wages and expenses.
- Development of function specific plans to address poor performing areas.
- Target setting and review periods established.
The outcome of our operational reviews is a comprehensive set of realistic recommendations that aim to improve revenues as well as reduce costs by setting achievable targets at department, upper management and board level.
BENCHMARKING
Established Benchmarking Process
DWS has unrivalled access to benchmarking data for the food, beverage, gaming and accommodation sectors. As well as established benchmarking tools, we bring 20 years of consulting experience to add significant insight to the benchmarking process. Our processes include the following elements:
- Comprehensive review of the performance of the business.
- Financial assessment to ascertain key performance levels at department and whole of business level.
- Establishment of associated industry benchmarks through access to a variety of databases, both internal and external.
- Identification of poor performing areas of the business.
- Establishment of targets and review periods.
Our extensive experience in the hospitality sector allows significant value to be added to the benchmarking process as we understand the hospitality sector. We understand the effects of management and board capability in improving business performance and we seek to fully understand the nuances of each business to ensure targets are met.
RISK ASSESSMENT
Our Expert Knowledge
Our expert knowledge of the hospitality sector places us in a unique position to understand the risks associated with new and redevelopment ventures. At the concept stage, DWS can outline the potential pitfalls from an operational, market and legislative perspective that fully informs businesses. Our risk assessments address the following elements:
- Operational assessment of risks including a review of the proposed development/feasibility plan and comparison to industry best practices.
- Assessment of the market environment to identify competitor strategies to best place the business defensively and offensively.
- Identification of current and prospective legislative changes that will likely impact a proposed development/renovation.
- Discussion with local government to ascertain future threats and opportunities.
- Development of mitigating strategies to counter threats and capitalise on opportunities.
Our exposure to a significant range of development projects has afforded us strong insight into the risks and opportunities associated with hospitality development.
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