RESTAURANT SOLUTION FOR LARGE HOTEL
A 1000-room hotel in a major US west coast urban market required a solution for a “C”-rated space in the hotel. The client had a failing 3rd-party operated restaurant that was paying almost no rent and offering substandard quality to their guests and diners.
The hotel sought to replace the existing 3rd-party operated restaurant with a more polished operator to add more value to the hotel asset and bring pride to the property by having a quality operation in the space, adding panache and excitement. In addition, the hotel sought to deemphasize it’s own additional restaurant on the property and limit room service offering in order to slim down costs.
What We Did:
The Next! team analyzed the market, identified a need and set out to bring in an operator that would present a concept to fill this need.
Next! met and vetted numerous third party operators through its extensive network of contacts that have been developed through decades of experience. With a goal of finding the “right person at the right time with the right operating philosophy that would give us what we wanted in the way of the concept and the levels of service,” Next! found the perfect fit.
After negotiating a “win-win” tenant improvement allowance deal that would be fair for hotel and operator, Next! worked with the operator during the design and construction process up to and including the opening. In collaboration with the operator, Next! brought in designers, architects and contractors who could execute and enhance the vision of the concept.
Project Specific Services Included:
- Asset Management
- Securing a bonafide Restaurant Operator
- Negotiating Lease Terms
- Design and Construction Consultation
In it’s first year, the new 3rd-party operated restaurant received a prestigious Michelin star. The success of the restaurant led to the hotel receiving 400% more rent than it’s previous tenant, enhancing the value of the real estate asset.
The hotel was then able to close it’s other restaurant and room service program, improving profits further. The Return (ROI) on the tenant improvement allowance was paid back in 15 months.