Acquisition Due Diligence
Pinnacle provides acquisition due diligence services for all hospitality property types throughout all markets within the United States and Caribbean. 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.
The best asset managers are those that can advise through experience. Pinnacle has a seasoned staff of professionals with a deep level of hard-earned knowledge in the hospitality industry. Based on that experience, our people have learned to react appropriately to market booms and drops – whether industry wide or property specific. We offer a customized array of services to provide both asset management and operational review services for clients that range from hotels and resorts to public institutions, publicly-traded companies and REITS, private equity investors and equity funds, individual owners and lenders alike. Most important, our Asset Management services are tailored to the goals of the client, whether its to maximize the value of the asset, protect the economic value, or to serve as an amenity to the institution.
Appraisals & Valuation
Pinnacle Advisory Group has the unique ability to combine the skills of experienced hospitality operations specialists with those of real estate valuations specialists, offering clients insightful appraisal and valuation counseling services that are specifically tailored to client needs. Our services range from relatively informal “valuation counseling” to help clients model and evaluate ROI to fully-documented narrative appraisals. Our appraisals may be used for a variety of purposes including, but not limited to, real estate tax assessment, foreclosure and bankruptcy proceedings, estate taxes, quantification of damages, purchase price assessment, and loan consideration.
College & University Services
Pinnacle has a long history of working with colleges and universities, including some of the most prestigious educational facilities in the world. Given our extensive experience with colleges and universities, Pinnacle offers specialized services that are designed to meet the unique needs of university and college hotels and conference centers. Our primary business aim is to provide universities and colleges with high quality, value-based consulting services designed to launch their entry into the hotel industry or improve an existing hotel property’s profitability, and to deliver excellent service to each client every time. Our clients enjoy a wide variety of services, including market research, operational consulting, development services, project management and ongoing asset management.
Development & Capital Planning
Pinnacle knows that there is much more to developing and implementing a concept than just having ample funds. Our experienced team uses a detail-oriented, market and financially-based approach to offer a broad-based look at the viability of potential projects in our development and capital planning pipeline. We leverage best-in-class financial modeling and a contact book of relationships formed over decades of industry experience to offer clients immediate access to the top service providers in the industry, allowing for a smooth sail through all aspects of the development and capital planning process, including design, branding, operations and legal.
From informal verbal presentations to in-depth financial projections and modeling, Pinnacle Advisory Group’s experienced team can work to help establish market support and financial feasibility for a hotel project by offering services including supply and demand estimates, facility recommendations, brand affiliation recommendations, and revpar and financial projections. Our reports are tailored to the specific needs of the client, ranging from brief reports for internal decisions, to comprehensive reports for lenders and investors.
Group Booking Pace Reports
Pinnacle Advisory Group tracks group booking pace data for large group hotels in major markets. This data is used by operators to forecast future demand, meeting planners to identify need periods, and owners to evaluate the relative performance of their hotels. In addition to gathering and distributing the data to market participants, Pinnacle provides the added service of analyzing the data and providing it to convention and visitor bureau clients to distribute to their membership.
Base impact is the effect of new competition on an existing property, usually resulting from the addition of hotel rooms that do not share the same brand. Incremental impact is defined as the effect of new competition on an existing property due to the addition of hotel rooms that have the same brand, operate within the same franchise company or access the same reservations system. Pinnacle leverages a combination of its decades of industry experience and its best-in-class research capabilities to accurately project top line impact for all hotel brands.
Litigation Support & Witness Testimony
Pinnacle Advisory Group’s Litigation Support Services team offers a broad spectrum of assistance to hospitality industry participants and their counsel. With its deep experience base and the seniority and reputation of its members, the Pinnacle team is exceptionally well-qualified to assist in these often very complicated cases. We typically offer a dual role in litigation support assignments – providing both expert-level consulting services and continuing on to provide testimonial expert services. From discovery assistance and opposition research to preparation of expert reports and assistance during the trial process, our team is happy to service cases both large and small, no matter how complex. Additionally, senior members of Pinnacle may serve as both mediators and arbitrators.
Operator Selection & Negotiation
Allow Pinnacle’s experienced team to help you select the hotel management company best suited to optimize a return on investment. The selection process may be through a Request for Proposal, or via direct solicitation. We offer decades of negotiation experience to help you achieve a favorable management contract and economic terms. Our proven approach in operator selection has led to return engagements with most of our client base, letting you and your team rest easily knowing you are making the best possible choice.
Leverage the experienced team at Pinnacle Advisory to maximize the profitability of your hotel operations. Our team will conduct a thorough operational review to determine whether your asset can be enhanced, and if so, to what degree. We analyze strengths, weaknesses, opportunities and threats to recommend new procedures that may prove more profitable.
Strategic Planning & Investment Analysis
Pinnacle’s approach to strategic planning involves market analysis, development of ideal and alternate strategies and evaluation of the appropriate strategy for next steps. We consider the level of required capital investment, potential return and associated risk and the degree to which your objectives are met. Our team will offer a proposed course of action and plan for implementation – and, if desired, guide you through the process of the strategic plan.
The hotel industry has been negatively impacted from the effects of Covid-19. Borrowers and sponsors have been working with lenders to help navigate through this economic challenge, which industry experts all agree may last several years before recovery back to 2019 performance levels. It may become necessary for lenders and even equity investors to assure the protection of their security by the appointment of a Receiver. This may not necessarily be hostile, but rather an additional level of protection and expertise for the hotel asset. Pinnacle is known and trusted by, and has worked with, all hotel franchisors, regional and national hotel management companies, a broad array of hotel lenders, hotel private equity investment firms, and hotel attorneys. We are uniquely qualified to offer objective, third-party Receivership services. We have assembled a highly qualified team to include Rachel Roginsky, ISHC, Principal and Owner of Pinnacle Advisory Group, who is considered a leader in hotel consulting, Gary Avigne, veteran hotel professional with expertise in all hotel disciplines and a number of notable Asset Management engagements, and Kenneth MacKenzie, Esquire, a specialist in hotel law. Pinnacle will deliver a qualified and professional resource team that can satisfy the oversight needs of a lender or investor, work with the operator or sponsor if desired, prepare a mid-term strategic plan, evaluate work-out plans submitted by a borrower, and help return the hotel to business health. Please call or write to Rachel to learn more.