Hotel for sale in Panama, located in the central business district

73-room hotel for sale in Panama City, asking price US$5.4M. Owners financing available.

A rare chance exists to buy into a central business district and commercial center 73-room hotel in Panama, close to all commercial activities, the main hotel sector and the banking industry.

Located near Hotel El Panama, close to both Avenida Republica de Argentina and Avenida Manuel Espinosa Batista, the hotel consists of 40 brand new rooms in a recently completed section of the hotel, connected to 33 original rooms, with brand new public spaces including a restaurant and pool area. A quiet location in the midst of the major commercial sector of this leading Central American thriving city.

The present owners and operators have recently competed building a new 40-room section, and are motivated sellers, in that they are not hotel operators and they wish to focus on their core business activities and not be burdened by hotel ownership and operational issues.

The attraction to the buyer is that there is an opportunity to build up the business to comparable levels of occupancy and average room rate with properties near by, with an added bonus of support by some owners financing.

Hotel Occupancy averages around 68% in Panama, down somewhat from the high of a few years back due to many hotel rooms coming onto the market. Panama hotels have enjoyed growing occupancy and surging average room rates over the last years. Yet this hotel building boom has been mostly in the luxury to 4 star levels.

This hotel is positioned as a 3 star product in a 5 star location, and with revenues approaching the US$ one million per annum mark with a 45% occupancy, is a prime opportunity for an investor with a mid-term view,  say 7 to 10 years, to reap substantial profits with the right management expertise or management partner.

In addition it would suit a buyer who is prepared to invest back profits to remodel the 33 older rooms to reposition and so modernize the whole hotel, reaping the rewards both within an existing strategy and in the operating period. Remodeling of these rooms should not negatively distract the hotel management’s operation ability to drive the business forward during that period.

With the new building completed and construction disruption to the business now behind it, we at Turner Lodging Co. is of the opinion this is a prime opportunity to purchase a hotel in an excellent location in the heart of the most vibrant business and commercial zone. For more information on this hotel for sale in Panama contact mark@turnerlodgingco.com.

And how does your hotel compare? Star ratings comparison

Hotel star ratings are generally different from one county to the next, for good reason. In Austria a 4 star hotel needs to have a 4 course set menu available daily in the restaurant, in Hong Kong room sizes are smaller, that would have an impact on a North American standard rating. Hence no world wide hotel rating system exists.

The commentary below is to the North American standard, from my files of some years ago so it  may be a bit outdated but you can get the message. Where do you really stand?

1. Guest Arrival Phase

The following items are considered during the inspection process for the Guest Arrival Phase: Advertising/Media Professionalism; Reservations/Phone Assistance; Restaurant Location; Signage; Building Appearance; Parking; Valet Parking; Grounds; Entrance; Maitre d’ Stand; Coat Room; Initial Greeting; Cocktail Lounge (Location/Décor/Service); and Seating.

Three-Star

• The reservationist is cordial and fully conversant with room types, rates, packages, dress code, recreational facilities, and transportation.
• The doorman greets vehicle, opens door, offers welcome to the hotel, assists with luggage, explains how luggage will be handled.
• Valet parking procedures are also explained.
• If necessary, the doorman presents claim checks for the car and luggage.
• Bell service is available for guests upon arrival and is summoned by the front desk after guest check-in to escort the guest to his/her room.
• Service at the registration desk is efficient and friendly with no long delays.
• Guest service agent is able to answer general questions about the property and makes an effort to provide personalized service to each guest.
• Concierge is available during extended business hours for guest assistance with reservations, all services and activities listed in the guest directory, and is? knowledgeable about the property and the local area.

Four-Star

• The guest can arrange golf tee times, reserve tennis courts, spa treatments, dinner reservations, etc. through the reservations department.
• The reservationist is knowledgeable about all facilities and services and provides confirmation and cancellation policy information.
• A written confirmation may be sent to the guest in advance.
• The overall property design should be unique and in concert with interiors.
• The doorman/bellman obtains guest’s name from luggage tag and uses it, escorts the guest to the front desk or provides directions, and opens doors.
• Bellman carts are impeccably maintained. Brass, chrome, wood and other surfaces are polished and free from stains and damage.
• There should be 24-hour front-desk and bell-desk service.
• Messages are given discreetly and assistance with luggage is offered.
• Guest is recognized by name and escorted to the room. Arriving at the room, the bellman should point out the nearest emergency exit, explain the use of the key, open the door, and hold it while the guest enters. He/she should offer to hang garments, explain room amenities, and give a brief orientation to the hotel.
• The concierge at this level accommodates most requests, responds in a prompt manner, and consistently uses the guest’s name.
• The exterior of the building reflects the quality found inside.

Five-Star

• The reservationist uses the guest’s name throughout conversation, thanks guest, and asks if there are any other needs.
• Background noise is limited.
• A written confirmation may be sent to the guest in advance.
• During the front door greeting and upon registration, the guest’s name is used more than once, guest key and credit card are placed in guest’s hand, waiting guests are acknowledged, and calls to desk ring no more than 3 times.
• A full explanation of the property is expected at check-in or by bell staff.
• All guests are offered escorts to their guest rooms.
• The guest room is prepped in advance and may have a welcome message, ice bucket may already be filled, or fresh seasonal fruit or flowers may be in the room.
• The exterior of property is immaculate: Turf – grass areas are well manicured, free from weeds and debris. Coloring and decor of external property is uniform. Landscaping – flowers are appropriate for the season, shrubs are uniformly trimmed, signage is visible and free from chips and fading, walkways are well lighted, and surface is free from cracks and damage.
• The grounds have been professionally planned and developed.

2.       Guest Room and Bath

The following items are considered during the inspection process for the Guest Room: Living Space; decor; Drapery; Linens; Technological Items (TV, Telephone, Fax, etc.); Minibar; Odor/Ventilation; Heating/Air Conditioning; Furniture; Beds; Walls; Closet/Storage/Drawers; Fixtures; Lighting; Floors; Housekeeping; Additional Amenities; turn-down Service; Bathroom Linens/Amenities/Physical Product; and Robes.

Three-Star

• There is a logical congruence in decor, current styles or within theme, and adequate free floor space with a sitting area.
• There is a mini-bar, and it is stocked daily.
• The drapes are pressed properly, free from stains or tears.
• The air conditioning/heating unit is attractive and congruent with the room’s decor.
• The windows open for air circulation.
• The room layout allows for comfortable placement and eating of room service for two persons.
• A variety of hangers are available (wooden, satin, pants/skirts).
• Carpets are of good quality; if marble or hard wood floors, they are clean and free from scratches or nicks.
• The guest room door is free from scratches, the doorknob polished, the key works without difficulty, and the door jambs are free from dirt.
• The linens are of good quality: plush, thirsty, showing no signs of wear.
• There is a bath rug and a minimum of two bath towels, one hand towel, and one face cloth per person.
• Amenities are a recognized name brand, presented on a tray or arranged in holder.
• Hair dryer is available; soaps are plentiful, and large.

Four-Star

• The room is spacious with quality appointments and may have an outstanding view. Custom designed drapes are expected with matching valances.
• Hypoallergenic linens are provided on request.
• All linens are high quality and of heavy weight. 100% cotton high quality linens and down pillows are standard.
• Double top sheets are expected, a foot mat may be present.
• Turn down service is expected.
• Furniture is of very high quality, wood is expected, and the design fits with the decor of room.
• The bedspreads are custom designed and are free from spots, tears, or worn areas.
• The dust ruffle is free from tears, pressed properly, and touching the floor.
• The ceiling is textured, moldings and decorative borders are present and free from scratches, etc.
• Walls are sound proof.
• A minimum of 4 skirt, 6 suit and 4 padded hangers are present.
• The luggage racks are in good condition and in good quality.
• The closet is illuminated and there is ample space for personal belongings.
• An in-room safe is available.
• A full-length mirror, safe, extra pillows, and a blanket are available.
• Carpets are custom designed and/or have a special pattern that compliments the decor of the room.
• Hard wood and marble floors are polished; area rugs are of high quality and may be custom designed.
• The room has multiple phones, message lights, data ports, voice mail, and express check-out is available.
• The room may have one or more of the following technologies: in-room fax, video games, and movie selections.
• The minibar contains premium brands of alcohol, a variety of beers and wine, premium snacks, and specialty items.
• A gift may be present for the guest.
• The pens, pencils and stationery bear the hotel logo and are in adequate supply.
• Ice bucket and glasses are of good quality.
• Pressing and valet services are available 24 hours a day.
• A choice of complimentary newspapers is delivered.
• All stationery is custom designed and coordinated, including the laundry/valet list, minibar, telephone pads, pens, pencils, etc.
• Amenities are expected to be at least 4 ounces in size and include shampoo, hair conditioner, mouth wash, suntan lotion (if applicable), hand cream, hair dryer, lighted mirror, scale, and fresh flowers.
• The robes are free from wear, stains, or tears and are clean and fresh smelling.
• The towel racks are of quality design and construction, the soap dish is built-in or of quality design, and the room has a marble tub/shower.
• Laundry bags are available in the guest rooms, and there is an acceptable turn around time for services.
• Clothes are pressed/laundered properly and are delivered in an attractive presentation. There is overnight shoeshine service available, and shoes are returned at an acceptable time.

Five-Star

• The room has a sense of elegance, with quality products.
• The following amenities are available: fax, video, VCR, Internet connectivity, cell phones, in-room games.
• In general, telephones throughout the property should be answered within three rings. Operator wake-up calls confirm the room number and time before concluding the conversation.
• The guest’s name is used and wake-up calls arrive within five minutes of the requested time. Greeting should be friendly. If a voice mail system is not used, message is repeated to ensure accuracy, message light is activated, written message is delivered within 15 minutes.
• The furniture is of high quality fabric and may be custom designed.
• Many pieces of original artwork and high quality prints are evident.
• The layout is sensible and comfortable, and all furniture is free-standing.
• The ice bucket is filled at turn-down, and a complimentary shoeshine is available.
• Slippers and floor mats are provided.
• Air conditioning, heating, and lighting systems are easy for guest to use and may have bedside controls.
• Housekeeping is impeccable.
• Staff is able to accommodate specific requests for time of service.
• The turn-down attendant removes or folds spread, folds down blanket and top sheet, fluffs pillows, turns on light, closes drapes, empties wastebasket, and replaces used towels, amenities, and glasses.Attendant also dries wet areas, straightens personal amenities, points toilet and facial tissue, refills ice, and places good night gift and/or message on pillow or nightstand.
• At least four magazines are available and current.
• Writing stationery and matches may be personalized.
• In the bath, there may be separate shower and tub facilities.
• The floors and counters are likely marble, there may be a lighted make up mirror and a heat lamp.
• High end or designer bath amenities are available.
• Robes and towels are plush, thirsty and large.

3.       Public Spaces

The following items are considered during the inspection process for Public Spaces: Lobby/Public Spaces; Elevators; Hallways; Signage; Banquet/Meeting Space; Pay Phones/House Phones; Temperature; Public Restrooms; and Security.

Three-Star

• Carpet is clean and stain free.
• Walls are unmarked, doors are smudge free.
• Elevator tracks are free of grit and debris.
• Restrooms are conveniently located and well-marked.
• Pay phones are recessed, equipped with pads and pencils, and are easily located.
• Phones are free from grease and dust; telephone book is in a professional cover with no writing in the phone book.
• Walls are free of graffiti.
• Notepads are full and unmarked. Pencil is sharpened.
• Ashtrays (if provided) are clean.
• Plants are dust free. If live plants, they should be healthy (not wilted or discolored).
• All reading areas should have excellent lighting.
• Light bulbs are dust free.
• Lampshades are free from stains and dust.
• Windows are clean and free from dust, smudges, and spots.

Four-Star

• Windows, glass or mirrors are clean and smudge free.
• Elevator buttons are clearly marked and working.
• The staff uses service elevators, not guest elevators.
• There may be a bathroom attendant.
• Cloth towels are provided in the public restrooms, and amenities are provided in adequate supply.
• Restrooms are monitored frequently.
• Furniture legs are free of dust and marks and flat surfaces are polished.
• Fabric surfaces are clean and stain free.
• The overall setting is attractive and welcoming, and the lighting is adequate.
• There are no noticeable structural issues.
• A gift shop is present and boutique shops may be available showcasing high-end products.
• The design of the public spaces allows for easy traffic flow, logical entry, and safety is not an issue.

Five-Star

• The public areas overall present a level of elegance and exude excellence.
• Staff use service elevators only.
• Pay phones are recessed and equipped with pads, pencils, and telephone books.
• Artwork is of high quality.
• The quality of furnishings and decor are high, custom designed, and congruent with the establishment overall.
• In the public restrooms, the vanities are clean and dry.
• The toilet paper is pointed after servicing.
• The chrome is polished, and the stall walls and doors are clean and free of marks and graffiti.
• All areas (toilets, mirrors, door hinges, ceiling vents) must be spotless.
• The climate in the public areas is controlled; there are no noticeable drafts.
• The grounds are landscaped and well maintained.

4.       Product/Services

The following items are considered during the inspection process for Products and Services: Concierge/Guest Services Staff; Fitness Center/Equipment; Day Spa Equipment; Fitness Center Staff; Day Spa Staff; Fitness Center Services; Day Spa Services; Fitness Center/ Housekeeping; Day Spa Housekeeping; Business Center Equipment; Business Center Staff; Business Center Services; Gift Shop Staff; Gift Shop Services; Retail Outlets Staff; Retail Outlets Services; Laundry/Valet; Shoeshine; Newspaper Delivery; Pool Cleanliness/Safety; Pool Lounge Area; Tennis Court Conditions; Tennis Court Services; Golf Course Conditions; Golf Course Services; Beach Condition; Beach Services; Condition of Hiking/Running Trails; Skiing/Snowmobiling; watersports Services; watersports Equipment; Children’s Programs; and Transportation.

Three-Star

• The concierge staff is competent, knowledgeable, and responds to all guests graciously. The telephone is answered within three rings.
• Eye contact is made with other guests waiting in line.
• Desk is free from clutter. Services include dinner reservations, sightseeing, theatre, beauty salon, shopping appointments, and transportation (including: confirmation of airline tickets, limousine, airport, etc).
• The Concierge is very knowledgeable, connected, and up-to-date on current hot spots, trends, etc. They are able to suggest several alternatives to guest requests.
• In the fitness center, weight machines and free weights are included, and there is sufficient equipment to accommodate the number of guests that use the facility.
• A registration desk and attendant are present; the center is well maintained and cleaned regularly.
• A variety of services are available (i.e. massage, yoga/meditation, spa services – wraps, baths, etc.).
• The locker rooms/changing rooms are clean with adequate supply of towels and robes.
• If a business center is present, the equipment available is technologically advanced and able to run most industry standard software.
• There is Internet connectivity and an adequate number of printers/copiers/fax machines to handle guest business.
• Business center charges can be billed directly to a guest room.
• Newspapers are complimentary.
• Other services evaluated include: gift shop, retail outlets, pool, tennis, golf, hiking/running, watersports, skiing, children’s activities.

Four-Star

• The concierge desk is adequately staffed.
• In the fitness center, Cybex® or equivalent equipment is present plus mountain climbers and cross-country ski machines.
• Equipment is wiped down after each use.
• The staff is knowledgeable about exercise routines, fitness, and all equipment and services.
• Towels, juices, bottled water, fresh fruit, magazines, and newspapers are available.
• If a fitness center is not available on property, the hotel has an arrangement with an outside facility that reflects the same level of quality as the hotel.
• Shampoo, conditioner, and body wash are all available in the locker rooms, which may also be equipped with toiletries (deodorant, razors, cotton swabs, cotton balls, combs, shampoo, conditioner, body wash, hairspray, lotion) and hair dryers.

Five-Star

• Concierge service is available 24 hours per day.
• The majority of the concierge staff are members of Cles d’Or.
• The area for the concierge is private, elegant and in keeping with the ambiance of the property.
• Concierge services are unlimited and include babysitting, personal shopping, pet sitting, etc.
• There is attention to detail and personal recognition of guest needs.
• The concierge staff is creative in their approach to handling requests.
• In the fitness center, over and above those services offered at lower levels, there is a cardio theatre and fitness instruction is available and offered.
• Beverages and extra towels are delivered to exercising guests.

5.       Departure

The following items are considered during the inspection process for Departure: Check-out; Bill Accuracy; Baggage Handling; and Valet/Car Services.

Three-Star

• The bell captain offers to retrieve car or arrange transportation when guests call for bellman assistance.
• The bellman is friendly, and bags can be stored for later pick up.
• Bellman assists guests with their mode of transportation (calls taxi, retrieves car from valet parking).
• Car is retrieved, or taxi is summoned promptly.

Four-Star

• The guest service agent greets guest and inquires about stay, prints copy of bill and presents it for review, asks about payment method, places bill in an envelope or folio, and hands it to the guest.
• The bellman arrives within five minutes after request for service (if it will take longer a call to the guest is made), knocks on door, announces department, and greets guest by name.
• The bellman retrieves luggage and makes a quick survey of room for forgotten items. He/she carries on a discreet conversation on the way to lobby and explains luggage procedures.
• If the guest’s car was held by the valet, the seat adjustments and radio stations are in the same place as guest left them when dropping off the car.
• Any parking charges can be transferred to guest folio.

Five-Star

• The guest service agent uses the guest’s name throughout the transaction.
• He/she wishes the guest a pleasant trip and extends the invitation to return.
• The doorman uses guest’s name, assists with luggage, opens door, wishes guest a pleasant trip, and extends an invitation to return.
• Directions may be offered by the bell or door staff.

6.       Food and Beverage

The following items are considered during the inspection process for Food and Beverage: Room Service Order Taking; Room Service Timeliness; Room Service Delivery; Room Service Product; Room Service Pick-up; Bar/Lounge; Primary Restaurant Rating (see Restaurant Inspection); Secondary Restaurant Arrival; Secondary Restaurant Physical Property; Secondary Restaurant Service; Secondary Restaurant Culinary; Secondary Restaurant Beverage; and Secondary Restaurant Departure.

Three-Star

• One quality full service restaurant should be open for 3 meal periods with a cocktail lounge available through midnight.
• A limited room service function should be provided.
• A business oriented banquet/catering function should be available.

Four-Star

• Two restaurants should be available; one should achieve a Three-Star level.
• A sophisticated cocktail lounge should be open through legal closing time.
• Room service should be available 24 hours with a comprehensive menu selection during normal meal periods.
• The banquet/catering facilities should be able to cater to large business and formal social functions with a comprehensive range of menu and beverage selections.

Five-Star

• At least two full service restaurants and cocktail lounges should be available.
• One restaurant should achieve a Four-Star rating.
• Room service should be available 24 hours with the ability to cater to virtually any culinary request.
• The banquet/catering facilities should be world-class and able to handle the most sophisticated events.

7. Restaurants

Three-Star Restaurant is well-appointed, with professional and attentive service. Guests at a Three-Star Restaurant can expect to find all of the characteristics for a Two-Star Restaurant, plus:

Restaurant Products and Services

• It is possible to reserve a table
• Cappuccino, espresso and café latte are available and freshly prepared
• A variety of teas is available
• A variety of bottled waters is available, including still and sparkling
• Glass wine selections include at least two reds and two whites; no “jug” wine
• The wine list includes a range of several vintages and regions
• The beer selection includes many imports and domestic specialty brews
• The beer selection includes brands related to the restaurant theme (i.e., Corona, Tsing Tao, Kirin)
• The spirit selection includes a variety of premium labels\
• Staff is familiar with wine and beverage offerings and can be of assistance with  selection or obtain assistance where necessary
• Staff can be of assistance explaining menu items or making recommendations
• Staff is conscious of service timing and avoids unnecessary delays in meal or rushing diners
• Staff is well-trained and technically competent in table service
• Service is pleasant and friendly throughout meal

Restaurant Facilities

• A comfortable area is provided for waiting and queuing
• Coat storage is available (guests do not have to keep at table)
• Host stand is well-organized, professional in presentation, and free of loose papers and internal memoranda exposed to guests
• Dining room has interesting decor. All elements are in keeping with theme.
• Staff uniforms are of good quality; all materials are in good condition and not showing visible signs or wear or dirt
• No soiled dishes are observed stored at side stations in dining area
• Dining tables are not situated in areas where waiting guests stand nearby
• Dining tables are not exposed to drafts from doorways or excessive kitchen traffic
• Clean cloth napkins used, of at least good poly/natural combination
• Tablecloth is used, or equivalently elegant/distinctive table top as related to atmosphere
• Menu presentation is elegant, no plastic or laminate; superior print quality or calligraphy
• Tabletop items are tasteful and of appropriate level of quality and elegance as related to theme of restaurant
• Guest Restroom is easily accessible and in immaculate condition

Four-Star Restaurant is an outstanding establishment, with exceptional service. Guests at a Four-Star Restaurant can expect to find all of the characteristics for a Three-Star Restaurant, plus:

Restaurant  Products and Services

• Reservations are closed with thanks and an anticipatory remark
• Valet parking available and efficient
• Staff proactively approaches guest when arriving
• Arrival was anticipated and guest greeted warmly and appreciatively
• If reserved, tables are ready within five minutes of appointed time
• Bar checks can be transferred to the restaurant bill
• Ladies are offered special attentive service; chair assistance, coat assistance, always first to be presented and first to be addressed
• Once seated, cocktails are offered immediately
• Menu features items that are clearly appropriate for calorie or nutritionally conscious guests
• Bottled still and sparkling waters are available – Glasses never empty for more than a short period of time
• Throughout all ordering and recommendations, staff remains patient, helpful and enthusiastic; never impatient or condescending
• Staff readily smiles and maintains an engaging expression
• All guests are served simultaneously, course by course, and cleared simultaneously, course by course
• All foods are fresh; never frozen unless specifically advised on the menu; never tinned
• Food presentations are colorful, interesting and include varied heights and contrasts
• Food presentations, even within a single dish, include contrasts of texture and possibly temperature
• Food presentations are perfectly executed with evident care given to each individual item on each plate
• Foods are presented on a variety of china of varying sizes, colors and patterns
• For dishes that have been ordered with a specific doneness, the preference is matched exactly
• For cooked dishes with no requested doneness, the cooking is perfectly executed (as a general rule, moistness, flakiness, crispness, may be appropriate)
• Food flavor is exceptional and indicates a complete balance, with no thought of a missing taste (such as a need for pepper, etc.)
• No portion packets used except sweetners; all condiments are in small ramekins or sauce dishes with appropriate service piece
• Tea is served loosely, brewed in a pot with a strainer provided
• Fresh orange and grapefruit juices are available and used in mixed drinks
• A variety of cognacs, liqueurs, armagnac and eau de vie are available
• The dining room temperature is comfortable and unnoticed by guests
• The restrooms are immaculately clean and stocked
• Dining room exhibits a well-organized and professional appearance; tables are uniformly set; all candles always kept lit, even when unoccupied

Restaurant Facilities

Common areas feature elegant live plants and/or fresh floral displays

• Staffed coat check available (climate-dependent)
• Public washrooms will be furnished with upgraded materials and appointments/luxurious design
• Public restroom lighting in Ladies’ Room is adequate for makeup adjustment
• Superior all-cotton or linen napkins used, crisply pressed and presented
• Table is padded with silencer, pad or moulton
• All menu items including daily specials are printed on the menu; no “chalkboards” or equivalent
• Flatware is silverplate, entirely free of tarnish or wear
• China patterns are varied for selected dishes and courses; not all dishes on identical china
• Restaurant lighting is comfortable, enabling menu reading, but privacy and ambiance maintained
• Background music is pleasant, yet unobtrusive to conversation

Five-Star Restaurant provides consistently superlative service to make it one of the best in the country. Guests at a Five-Star Restaurant can expect all of the characteristics for a Four-Star Restaurant, plus:

Restaurant Products and Services

• Mixed drinks will be served club service
• Wines ordered by the glass will be presented in the bottle and poured at the table
• Amuse Bouche is of exceptional quality and presentation
• Food presentations are perfectly executed with evident care given to each individual item on each plate
• Food is flawless, a delightful and interesting experience
• Only solid cubes of ice are used (no hollow cubes)
• Mignardise or petit fours are served at conclusion of meal
• A cheese course is offered
• Tea is served loosely, brewed in a pot with a strainer provided
• Reservations service is very warm, appreciative and attentive
• Reconfirmation of reservation is at convenience of the guest
• Valet Parking service is prompt and efficient
• Table is immediately ready upon guest arrival
• If table is not ready at fault of restaurant, guests are offered an extremely comfortable place to wait and attentively cared for during the delay
• Service at bar is of equal level of professionalism, warmth and graciousness as dining room, host and reservation staff.
• The guest’s name is used effectively as a signal of recognition, but discreetly
• A sommelier is present and extremely informative, warm and of assistance
• Service is warm, gracious and anticipatory and committed to providing the guest with a fantastic dining experience
• Pace of meal is never noticed by guest; there are no awkward delays or rushed events
• Napkins are replaced when guest is away from table or between certain courses
• Coats checked are retrieved ahead of the guest during departure
• Staff is warm and gracious upon departure and makes a point of thanking guest for visiting

Restaurant Facilities

• All staff are attired in a manner that is exceptional and commensurate with atmosphere of restaurant
• decor is exceptional in all visible areas
• Fixtures and decorative items are of excellent quality and consistently in keeping with, and adding to atmosphere
• Linens are of exceptional quality and design
• Exquisite quality and varying patterns of china
• Glassware is of highest quality and specifically matched to individual wine or spirit
• Public washrooms feature well-maintained cloth towels, fresh plants or flowers and elegant fixtures

Now where does your hotel or resort really stand??

In need of putting the above into action and achieving 5 star results? The hard part? Then contact mark@turnerlodgingco.com, who can help you consistently achieve your desired star service levels.

Some reminders on staff retention, add a good dose of common sense to the commentary below

At all times and even more now that the economy is mixed or struggling in Panama and Costa Rica, retaining  trained hotel employees at all levels is essential because of the obvious need to exceed the expectations of our guests. Let us assume those expectations are known.

The cost to the owner, the disruption to consistency of service staff delivery can not under estimated. One could add to that a list of associated costs to a management company.

To inspire and retain that motivation each employee brought to the work place on his or her first day it is not all about how much compensation and benefits one pays ( although this is certainly a major issue in poorer countries like Malawi where day-to-day survival comes first in most people’s minds), it is about creating and retaining an atmosphere where each person feels appreciated, retaining the team spirit and that requires capable and caring business practices and strong leadership skills.

Some points with questions for leaders to answer.

What ever culture, or to put it another way, what ever the way of life a company operates should be developed from within over time to reflect the goals and particular characteristics of the long-term needs of a company. Questions to ask are is your culture clear? No doubt it is service orientated, but do new prospects understand it and will they buy into that culture, do they fit, are they service oriented? Being a right fit results in a happy and hopefully appreciated person. Message, during the hiring process expose your culture and hire right.

Is the total compensation fair? Is it truly competitive for the skills that individual brings to the company in that location? Try to create a balanced (and incentivized where ever possible) package, and that means other aspects such as retirement plans as suit your location. Does it incorporate bonuses geared to clear performance goals which can be very clearly determined as having been achieved or not during the annual employee performance review? Is this process clearly defined and discussed during the hiring process? As an employer do you dictate the goals to be achieved or is this a two-way discussion so the content can be fine tuned and improved on? Performance-based plans should be designed very carefully to make certain that everyone is motivated to strengthen the business as appropriate to their contributions.

Common sense prevails that ensuring everyone is appreciated for their contribution should be top of the list once the hiring process is completed.

Are all your employees at what ever level encouraged to make suggestions to their immediate superior. Is that idea just brushed off? Is that idea used when suitable? Are you still operating in the dark ages where the culture is very much top down and the employees feel they are being dictated to and bossed around. (According to the Institute of Customer Service-Panama still very much a complaint in the workforce)

What employee recognition programs do you have? How do you thank and how often do you thank someone for a job well done? Hand written notes, hotel wide recognition, hotel group recognition, is it done consistently? You don’t have to lavish prizes and small gifts all time, a simple note of appreciation works wonders.

How as a leader do you express pride and appreciation in the numerous ways ones employees exceed your expectations? Do you use employees bios within trade web sites, face book, twitter and the like? Lets say it again and again, people who feel appreciated and valued are more loyal yet how many leaders actually go out of their way to utilize this simple human touch on a regular basis?

No excuse on this one, costs can be controlled, but each employee should have a professional development program including inter department training exposure geared to their career aspirations. A win for long-term staff retention.

There are many others, one being an owners responsibility to invest in adequate  equipment for each person to do their job. That means from cooking utensils to lap tops. A sensible and ongoing capital reinvestment plan. Commentary on that for an other occasion.

For a human resource and staff training plan to suit your operation and budget contact mark@turnerlodgingco.com who works in conjunction with the Institute of Customer Service-Panama on this topic.

Tips on the sales process, for the owner of a full service hotel

More hotel owners I believe should realize that the quickest way to have occupancy and net profit improve dramatically within a short period of time is by the General Manager getting involved as they should in the hotel sales efforts.

Traveling around and talking to some hotel owners recently some very basic advice seems to be appropriate.

Resorts and those properties in the city are somewhat different but in the comments below you can get the gist of  what should be happening.

• Given your General Manager is the CEO of your hotel every local organization from the chamber of commerce, to the board of each important local community organization, every single tourism authority, and the Tourism Minister should be well acquainted with the GM. Involvement and relationship building needs to be ongoing. Is there a plan in place for this relationship building?

• A General Manager who is effective in Sales (lets just ignore the operational aspects) will take advantage of the daily peak operating periods to pour some coffee at the breakfast table and pour water at the luncheon table and yes, shake hands. How often do you see that?

• The GM should meet and greet on arrival all the top 10 key accounts and either follow-up with a call during their stay or speak with them on check out, while ensuring you have great business relationships with the person who actually makes the bookings at these top accounts (the secretary to the CEO?) Who could be better candidates, at no cost, for repeat business or positive word of mouth.

• He/she should have two on site business lunches per week at a minimum. Look after your key accounts. Look after your high spending resort guests.

• Your General Manager should be making a minimum of 15 calls a week to new and potential account leads in support of the sales team, who should be met during the daily sales briefing after 5pm to give encouragement and support.

• Does the GM meet or call each guest who informs the management that something went wrong? These most valued guests, who have taken the time to comment are too often looked upon as someone to avoid. You not only have an opportunity to win them over and ensure whatever went wrong does not happen in the future, but these guests will more likely recommend you to others if you appease them.

• And most importantly the General Manager needs to instill a sales focused attitude in their team. This can be developed in many ways, but at least get the message across that a smile and acknowledgement from everyone  to all guests  at all times is a must in the hospitality industry.

For advice on winning business plans with winning business sales strategies for hotels in Panama and Costa Rica email mark@turnerlodgingco.com

The hotel aquisition process (Part 2, a simplified commentary)

Negotiation of the deal

So the bid price has been in principle accepted so we need a document outlining the project and the analyse as to what led you to that position.

This guiding paper being the foundation of the operational business plan would include,

A description of the property, the market summary and the projected market opportunities, all the financial information with the cash flow projections, financing aspects, management and brand affiliation opportunities, renovation costs and an engineering plan in general regarding future requirements related to the building .

Now the process of serious negotiations can begin, and the buyer needs to take these next steps forward with due care.

The hotel procurement terms consist of these most important aspects of a deal.

The price, the financing package including seller options, title and property condition, default aspects, an agreement on what is defined as a hotel asset ( this list consists of,but is not limited to the land and property, cash, all inventories, pre paid deposits and expenses, all equipment be it fixtures fittings and all equipment ( linen to spoons to security cameras) vehicles, licences and permits  as well as staff lists, all operational human resource records, all sales and marketing information, clients data lists, suppliers, key accounts, accounting books of record )

Numerous aspects are involved to come to an agreement to the final sales price.  Seller financing will push the price up, long payment terms will push the price up. Can a mortgage be taken over? What is the financial strength of the buyer and how quickly can the property be bought? All will influence the price.

Also a list of contingencies come into play, such as the buyer not being able to secure  financing, get the required licences and permits to operate, achieve the deal line of due diligence completion.

The contract aspects evolve around agreeing on a non binding letter of intent, or an other option is to go straight into a binding agreement with a list of all the way outs, (for what ever reason during the due diligence process, lack of financing, unable to obtain permits etc )

It costs more and takes longer to negotiate a binding agreement with outs, and the negative aspect of the LOI initial approach is that you are lengthening the whole process.  You are trading off wasting time with this process compared to  a gamble the due diligence results will be to your satisfaction by going straight into a non binding contract.

Letters of intent can serve good purposes when complicated transactions are being negotiated, for certain legal reasons, if a group of investors are involved.

What goes in and what does not go in these non binding letters of intent or a binding document with outs will be carefully discussed with your lawyers and all advisors. For example does the buyer want the seller to not be able to sell to any one else during and initial period, perhaps the whole due diligence period? Can this be negotiated? Is there a time line for all this process to be completed?

Probably both parties will want to be able to be able to terminate at any time without damages, and as a buyer may be spending a lot of cash during the due diligence period, then they need to have full clarification of their rights to enforce the seller to proceed with the sale.

The due diligence period incorporates the following:

• A legal description of the property
• All employees, name, remuneration package details, position, all benefits.
• All engineering plans and architectural specifications will be provided
• All insurance aspects with details of all coverage with the costs and details on all limitations
• All inventories detailed
• An accountant will audit the profit and loss statements
• An audited balance sheet for the last five years will be produced
• Capital and construction expenditure for the last five years detailed and an estimate  of  projections for expenditure required next three years
• Details of any actual or possibly pending legal threats or litigation against the property.
• Details of any mortgages on the property.
• Fire, health and safety reports with an engineers report
• Land tax and property tax applicable with proof of payment last 5 years
• List of all supplies of services.
• List of all tenants, rents, lease details
• Occupancy and average rate the last three years clarified
• Recent appraised valuation of the building
• Reservations and deposits
• Service contracts with third parties, with details on all issues the buyer will assume like franchises, licenses, permits, management agreements, union agreements.
• The current operating year profit and loss statement with comparison to previous year will be ascertained to which the management will comment and add certain costs that may be missing so a true reflective NOP can be clearly determined
• Trade names and copyrights.

Following successful completion the final purchase and sale contract is drawn up.

The content and issues outlined in this document are normally like this.

The property description, the list of assets being purchased, title and survey aspects, all licences and permits and franchise agreements, the date of transfer,  all the financial terms with the terms of finance and information related to present trading results, the details of the due diligence with the obligations and  rights of both parties, occur and the rights and obligations of each party, closing documentation, closing expense obligations, and legal aspects.

In addition since staff are the most important ingredient of a successful business and one is buying into their expertise their needs should be very much at the forefront of the buyers mind.

The take over of the staff should evolve around the sellers officially terminating all employees on the day the property changes ownership, and then the buyer re hires them ( or whoever they wish to hire) on a probationary basis. Management should by this time have a good idea on the benefits of re hiring most staff as the analysis of staff strength should be a critical component of the due diligence process. Aspects covered include staff medical records, pension and benefits, and vacation days owned.

Often a buyer will decide that all staff can bring forward their benefits and an accounting transaction is worked out. Legal advice being taken regarding assuring the buyer avoids taking over any liability issues.

The hotel closing day transactions incorporate calculation of that days property’s revenues and expenses and the physical stock take of all inventories included in the purchase price.

Once the necessary calculations have been worked out and the cash transferred the buyer is the owner!

For advice along the tricky road of hotel acquisition contact mark@turnerlodgingco.com

The hotel acquisition process (Part 1)

The Acquisition Process, as simply as possible

The complex relationship between a business and real estate makes the process of buying into a hotel as complicated as one wants to make it, or as simple as a buyer wishes it to be.

Without question it is those buyers who are better informed who get the best deals.

An informed buyer needs to go through a process that will maximize the amount of information and relay the cost/benefit ratio.

As with the procurement of any business there is an acquisition process, a step by step approach.

Namely

• Ascertaining the acquisition criteria
• Sourcing the product
• The initial assessment and the decision to proceed with seriousness
• Ascertaining the price while compiling a business plan

In part 2 we will cover

• Negotiation of the deal to a LOI to buy
• The due diligence process
• Closing the transaction

First up, ascertaining the acquisition criteria

A prospective owner will look at any purchase in many different ways, be it with an active or non active role, is it a short or long term play, is yield and cash return the key.

What ever the decision-making process is motivated by certain criteria stand out for consideration.

• The properties type and its location
• The size and potential cost per room
• The risks involved with new competition entering the market
• Is the management structure changeable, is the franchise affiliation changeable, is a management brand or franchise required.
• The presently achieved cash flow and its potential cash flow and yield
• The risk analysis to cash flow stability and growth.
• Where is the upside potential, be it in management related areas, in repositioning through renovation,
• The potential appreciation or depreciation in asset value

Each buyer will have their own answers to these, in conjunction each buyer needs to have clarity and a strategy within a defined decision-making program as they enter into the hotel buying process.

Sourcing the product

Your Acquisition Group

A broker.

An Appraiser who understands your market

An accountant who has hotel clients who can determine the correct net operating profit and if the revenue achieved is all from that business and that costs and controls are adequate, he can also helping the compilation of a business plan.

A market consultant to help you find out how this property may perform or improve its performance and what strategies could be applied to achieve your financial goals, this person also can help you put the business plan together.

Your legal advisor, who understands the hotel industry. Critical they do.

Possible an Architect and or an Interior designer. If renovations and upgrades are required down the road and with the Engineer they can review all the physical components of the building. Electrical, plumbing etc.

The initial assessment and the decision to proceed with seriousness

Obviously many hotels will not pass the initial screening process for numerous reasons.

The most common is an asking price that bears no resemblance what so ever to a sensible yield % based on the net operating profit being achieved.

This is mainly due to realtors accepting to list properties, and in many cases encouraging them to do so, at valuations they somehow dream up all based on what they perceive is a real estate value. Hotels are businesses and their value is mostly reflective in what net income they generate. Obviously some buyers over the years have not caught on to this hence the numerous stream of crazy priced hotels and resorts on the market here in Costa Rica. Same applies to Panama.

Once you find one that may be a possibility a site and property analysis begins and at this stage a possible go or not a go decision needs to be made.

Ascertaining the price while compiling a business plan

Based on an initial property and market analysis the aim is to come to a suitable bid price.

This bid price evolves around ascertaining what potential earnings can be achieved by your management team from the property, obviously an analysis of the present trading results by your experts and an analysis of what future market conditions will be like and the potential properties performance within that market need accessing. A preliminary business plan is then drawn up by your team and management.

Firstly it is important to understand the market. Simply put this involves ascertaining  the present and the ever-changing dynamics of demand.

An assessment is made on how these market dynamics balance with the hotels concept, its mix of rooms and facilities, the quality of the building of both hard and softs, if applicable franchise or brand affiliation and associated revenues directly generated, the management and options for other organizations suitability to the property, and the capital structure and its future capital investment requirements. The hotels trading history and the projected market performance are complied with assumptions as to future market performance, a base line business plan for the property, with net cash flow projections over 5 to 10 years

With this information, and your exist strategy with the potential disposition price taking into account your finance costs a professional will work with you to define the discounted value at todays pricing, giving you the maximum price you are prepared to pay.

Then you have a solid foundation for the next decision as to how to proceed.

Is this an opportunity for a turnaround with good upside potential, or has the property reached its peak in earnings taking into account future capital investment requirements?

Obviously your appraiser will advise on the general market conditions and the weakness or strength of the local market to assist this process of defining the bid price and making that bid offer.

View the author Mark Turner‘s profile on www.Turnerlodgingco.com.

Why do we see so many underperforming hotels in Costa Rica?

One would have thought that in a country that has tourism at the top of its agenda that the industry would be a roaring success with world-class quality services all over the place with properties that have and are achieving their operating potential.

Sadly this is far from the case, and now more than ever, with a declining tourist base and an oversupply of inventory we see hotels in stress mode.

Why? Some reasons are as follow.

Lack of investment in people and education during the good times.

Poorly thought out project in the first place.

Non trained management with no eye for detail and no creative flair, same old boring offerings led by that antiquated menu.

Poor quality service, friendly generally yes, but you often get the same service at the local soda as you get in expensive restaurants.

The food offering sucks, the lack of creative flair coming out of the kitchens here in general is a disgrace to the industry.

Lack of investment back into the business over the years, a lack of an ongoing financial and ongoing investment plan that is pivotal to the ongoing success of the business.

No training budget, no training period.

Lack of market understanding, no idea on who the market is and what the customer base require.

Ownership and management that do not have the skills to reposition the property and adjust to different trading conditions.

Lack of awareness of how the industry world-wide has developed, how the expectations of the travelling public have changed.

Lack of value in the product offering, poor pricing strategies.

If you require a review of your hotel and advice on how to implement quality hotel management strategies and services, send your enquiry to Mark@turnerlodgingco.com

What makes a great restaurant? The basics

Value, whether it is the soda down the road or the Italian at the Four Seasons, the food presented and the experience offered needs to offer value. That means the more it costs the more you need to offer, from ambience to service. The customer wants great food at a fair price and that package is what you need to produce.

The food offering should be tasty, fresh, exceptionally well cooked, something that gets those taste buds tingling, in my case I like it to be reflective of the location and culture one is in.

Creative menus, not a standard offering one can except to receive in about 75% of the restaurants in Costa Rica.

Consistency in the food and service quality delivery. No good great one day, appalling the next

Service, the same old motto, It’s all about people. In no particular order the service needs to be attentive but not overbearing, timely and that does not mean quick or prompt it means as the dinners wish, beverages offered and refilled with out request, personable but not over friendly and well-educated and knowledgable staff who understand the product being offered.

An experience to remember, a feel good place. You do not need to spend a fortune on decor and fixtures and interior design but what is offered needs to gel together. Every table should be placed and located to best advantage in relation to the service delivery, the eye contact that each guest experiences from each chair assessed in order to make best advantage of it. How a customer feels is critical. It is also, in my opinion, the most important component by miles in which a restaurant is judged. That is part of the design process.

If you are in need of advice in restaurant design and management and how to improve your restaurant offerings please contact mark@turnerlodgingco.com

Hotel sales and marketing – get the basics right

With business down what can management of Costa Rica Hotels do cost effectively to stimulate sales.

Some aspects come to mind that seem to be overlooked in the sales process here in Costa Rica.

Firstly ask oneself do we really offer value? The value product aspect, all those oversees trips you are paying to your sales person or that marketing representative are being washed down the drain as the message being sold in no way relates to the reality on the ground. The quality of food and service and associated poor value this represents to the international tourist are too much under par generally here, and owners and management need to address this serious issue.

Take the value aspect in Costa Rica hotel restaurants in general for example. In some so called 4 star hotels you often  pay over $14 for a burger and chips and get what, stale buns, an overcooked frozen patty, a slice of tomato with luke warm fries cooked in unhealthy oils, with ketcup presenated in plastic wraps. Same as one would find in a local soda. Yuk!

Owners and operators can reach out for cost-effective professional advice to turn your  product offerings into something of real quality and value, by contacting mark@turnerlodgingco.com

Why is it so many Costa Rica hotel web sites lack professional creative input and why so many are so badly presented.

Ok it is not the only sales tool but it is the most important, and you do not need to be a genius with a huge wallet to create the content of the messages that best promote your unique property, while importantly finding that web creative talent that actual knows how to build a web site using search engine optimization strategies.

Take a look at your web site and compare it some of the better offerings out there. Start with those properties presently marketed under the small distinctive hotels of Costa Rica brand. Ask your self how do we compare? Are we visible?

For cost-effective web site content creation, that is in well written English geared to your market and your product, contact elaine@turnerlodgingco.com. She has created Costa Rica Bedfinder, Costa Rica’s online accommodation superstore, and many other hotel web sites globally. We have tried and tested formulas for success learnt the hard way, through mistakes.

Some Really Simple Sales Basics

Sometimes, some of the most obvious, most simple, tactics can have a strong impact on sales.

Do your staff acknowledge your guests every time they pass, a simple good morning and an eye contact and smile?

Do you have sales training as applicable for all staff members?

Are your staff educated and confident in selling upgrades and those packages at check-in?

Are all your guest comments on your hotel website?

If your site is more than six months old, have you had a professional analyze your site to improve its effectiveness?

Is the General Manager a salesman? Is he or she visible? Does he get out and shake hands? Does he have a sales briefing every day? Is he sales driven?

Have you done a competitors study, do you know your strengths, do you have a revenue  management strategy, do you know what you are selling?

To assist you in putting together winning sales strategies and for sales training generally, contact mark@turnerlodgingco.com.

Hotel business plans, for whom, why?

Hotel business plans are for all purposes, most sit on shelves gathering dust as soon as they are completed, perhaps incorrectly compiled solely by the financial department. Some don’t gather dust, those created by smart business operators and owners.

In the international world of hotel brand management most form an annual ritual of head office wishing to find out what their management fees will be under pressure from the CEO who is hell bent on growth, while the GM and the team put a proposal that is rather conservative knowing that some expert higher up will boost it up killing off any incentive to achieve it.

Some are for owners who do need the truth, some are for owners that do not need the truth, for what ever reason and they are numerous.

Some are to back up the feasibility study to obtain financing for a new project.

Some are the feasibility study (we are building it so you better tell me how much profit we will make 1^st year!).

Some are for real.

Real ones are living documents, put together by all members of the team, from the bottom up, line item by line item for each cost center and for each segment and part of the revenue generation plan. Everyone is in sales so everyone is involved.

They result in a plan that with some prodding skywards from those above is an achievable and motivational tool that the owners and operators can feel proud in achieving.

For input into realistic, motivational and balanced business plans contact mark@turnerlodgingco.com.