TECHNICAL DUE DILIGENCE FOR Hospitality INDUSTRY

1. Name of the Property/Business:
2. Location:
3. Type of Establishment (Hotel, Resort, B&B, etc.):
4. Year Established:
5. Ownership Structure:
6. Key Management Team:

Current Financial Statements (Income Statement, Balance Sheet, Cash Flow      Statement):

1. What are the revenues and expenses for the last three years?
2. What is the current debt load?
3. Are there any outstanding loans or mortgages?

Profitability:

1. What is the EBITDA (Earnings Before Interest, Taxes, Depreciation, and       Amortization)?
2. What are the key profit centers?

Cash Flow:

1. How consistent is the cash flow?
2. Are there seasonal variations?

Occupancy Rates:

1. What are the average occupancy rates by season?
2. What strategies are in place to manage low occupancy periods?

Staffing:

1. How  many employees are there, and what are the turnover rates?
2. What training programs are in place?

Service Quality:

1. How is customer satisfaction measured and managed?
2. What are the most common guest complaints and how are they addressed?

Condition of Property:

1. What is the age and condition of the building(s)?
2. Are there any planned or required renovations?

Technology:

1. What technology systems are in place (PMS, CRM, etc.)?
2. Are these systems up to date?

Licenses and Permits:

1. Are all necessary licenses and permits current?
2. Any pending legal issues or disputes?

Regulatory Compliance:

1. How does the property comply with local, state, and federal regulations?
2. Any history of non-compliance?

Market Position:

1. Who are the main competitors?
2. What is the market share?

Customer Demographics:

1. Who is the typical customer?
2. Any trends in customer preferences?

Growth Plans:

1. Are there expansion plans or new projects in the pipeline?
2. What are the long-term strategic goals?

Branding:

1. Is the property part of a franchise or independently branded?
2. How strong is the brand recognition?

Sustainability Practices:

1. What environmental initiatives are in place?
2. Any certifications like LEED or Green Globe?

Insurance:

1. What insurance policies are in place?
2. Coverage for natural disasters, liability, etc.?

Safety and Security:

1. What safety protocols are in place?
2. Incident management procedures?

Innovation:

1. How does the property keep up with technological advancements in hospitality?
2. Any recent tech upgrades or planned upgrades?