Transcript Destination Hotel Partners, LLC

Hospital Lodging Systems, LLC
515 Madison Ave 22nd floor
New York, NY 10022
www.desthotels.com
1
Table of Content
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Title page - pg 1
Table of content -pg 2
Overview -pg 3 -4
External Rendering - pg 5
Internal Rendering - pg 6
Room Rendering- pg 7
Why HLS pg- 8
HLS Program- pg 9
HLS Benefits to the Hospital - pg 10
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24 hour Gym- pg 14
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Restaurant- pg 15
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Flower Shop- pg 16
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Pro Forma- pg 17-19
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List of 30 Cities for Hospital Lodging Systems - pg 20
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Map of 30 Cities for Hospital Lodging Systems- pg 21
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Team Members- pg 22-24
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Advantages of HLS Brand- pg 25
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Green Hospital Design- pg 11
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Vision & Goals- pg 26
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Our Green Elements will focus around- pg 12
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Strategic Partners - pg 27-34
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Amenities Programs- pg 13
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Overview
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Hospital Lodging Systems, LLC is committed to being the leading hotel development
organization specializing in development, construction and management of lodging
systems featuring hotel like products for use in conjunction with hospital operations.
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HLS works in partnership with hospitals and functions as an integral part of their
operation; allowing the hospital partner to fulfill their mission to the community
•
Hospital Lodging Systems, LLC has a staff that includes professionals in development,
construction administration, project management, asset management, operations,
support services and lodging operations.
3
Overview
Constituted as a New York based entity, we are a unique hospital lodging developer that
focuses on creating lodging healthcare systems that are fully integrated with hospital
operations. Our team of experts implement the development, financing and construction of
lodging facilities as follows:
We enter into an agreement with the hospital to set up a
development entity.
We identify potential locations that are part of the Hospital
complex. Very often air space over parking lots works best.
We design the product to integrate with and complement the
operations of the hospital with special attention to maximizing
billable charges.
We provide project financing.
We develop and build the physical plant.
We asset manage the facility over the long term.
4
External Rendering of an HLS/ Hospital Hotel
3Floors of Doctors Condominiums
/Apartments at market rate – 1 & 2
bedroom units
4Floors of guest rooms – Kings,
Queens, Double/Double Suites
4 Floors of outpatient care facilities
Ground floor, lobby:
Doctor’s offices & Restaurants
Radiology
Below Grade:
&
Physical Therapy
5
Internal Rendering
6
Room Rendering
7
Why HLS?
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Hospital Lodging Systems, LLC was created to assist hospitals in delivering services.
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As the need to be near a family member increases, so does the expending for traveling, lodging
and medical care. HLS understands the mission of the hospital in caring for families.
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We at HLS are proactive in supporting hospital operations with daily lodging options. We
understand the concept of expanding the health care product mix.
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Our company was built on a solid foundation, has the knowledge and expertise required to
create a synergistic partnership with medical facilities.
8
HLS Program
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Hospital Lodging Systems, LLC has created a unique
lodging development program that focuses on
creating lodging systems that supports medical
operations on hospital owned land and medical
centers.
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There are 6,731 hospitals and medical centers
throughout the United States of America.
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The development targets for the company is to enter
into 20 agreements in the next five years.
9
HLS Benefits to the Hospital
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Decreased length of stay as a “step-down” care
alternative to acute care
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Increased marketability and satisfaction for
patients and families
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Physician rounds on patients outside clinical care
facilities
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Meeting and restaurant space for pharmaceutical
meetings to keep physicians on property
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VIP hospital suites
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Post-op stays for surgical patients
Improved restaurant alternatives to daily visiting
(local) families
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Family member stay
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Increased access to space for ancillary services and
outpatient facilities
Improved marketability and visibility to the
community
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Ability to add new service lines – wound care, PT,
urgent care, etc.
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Helps to modernize the look and feel of hospital
and grounds.
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Improved lodging alternatives for physicians,
residents, staff.
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Increased meeting space, potential draw for
clinical meetings.
10
Green Hospital Design- Creating Balance
HLS will provide green hotels for hospital campuses which offer
flexibility in room layout, exceptional amenities and services for
visitors, combined with environmentally sustainable building and
operation practices. HLS is connected nationally accepted standard for
green buildings. HLS provides innovative strategies for sustainable
development, water savings, energy efficiency, materials selection and
indoor environmental quality. Our designs start with understanding
your site and its opportunities and constraints. This coupled with
good day lighting practice and orientation provides your new building
with extraordinary lighting during the day while reducing your energy
costs. We have carefully put together green elements which will
enhance your space and reduce your energy while providing healthier
places for your guests. Our facilities will strive to reach LEED
certification.
It is our intent to provide energy efficient and environmentally
sustainable hotels. This will create a balance that fully explores ways in
which to limit environmental impact and conserve energy in the
design, construction and operation of our hotels and their amenities to
provide a better and healthier place to work and live.
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Our Green Elements will focus around:
•More than 90% of the hotel interiors capture natural daylight and have access to outdoor views.
•Reduce site disturbance by integrating buildings along existing topography.
•Initiate a strong building envelope strategy to reduce energy demand, moisture penetration, mold and mildew.
•Use regional vendors and artists for materials to reduce transportation and packaging.
•Develop ways to reduce our carbon footprint by using renewable energy in the form of solar panels, geothermal
heating & cooling and wind power.
•Water conservation systems to include dual flush toilets, low flow water fixtures, waterless urinals in Men’s public
restrooms, and native landscaping to requiring limited irrigation to reduce water demand by 30%.
•Low VOC (Volatile Organic Compound) carpets and pads, paints, sealants and adhesives throughout facility.
•Use 30% less energy than a conventional hotel by using high efficient materials and the latest construction
technology.
•Take advantage of abundant natural lighting with large energy-efficient operable windows which will bring in natural
ventilation and provide a high level of indoor air quality (IAQ) by circulating large amounts of outside air into the
guestrooms while employing energy recovery technology.
•Use of recycled materials throughout facility.
•Chemical free cleaning and laundry products.
•Use of non-CFC producing refrigerants.
•50% of construction waste will be reused or recycled.
•Use of 100% organic products in the SPA.
•Use of high performance lighting and controls to incorporate motion sensors and lighting sensors to reduce lighting,
cut energy and reduce cooling requirements for all spaces.
•Provide a program for the collection and storage of plastics, paper, cardboard, metal and glass recycling materials
•Provide cool roofs to reduce heat islands and initiate rainwater recovery.
•Become an “Educational Center” for sustainable practice for both guests and outreach programs.
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Hospital Lodging Systems
Amenities Program
24 hour Room Service / Monitoring Services
Restaurant for Breakfast, Lunch and Dinner
Low Carbon Footprint Model
Upscale Bathroom Fixtures
Anti-theft Warning System
24 hour gym
Fully Wired Lodging Units
Expedited access to Hospital Services
Access to Home Care and Nursing Support
Super- Sanitary Facilities
Access to Physical Therapy
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Hospital Lodging Systems
24 hour Gym
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Hospital Lodging Systems
Restaurant
15
Hospital Lodging Systems
Flower Gift Shop
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Pro- Forma
Typical Project
Closing and Construction Costs
Land Purchase
Closing
Bank Fees
Mortgage Recording Taxes
Mortgage Transfer Tax
Legal Fees
Feasibility Study
Title Insurance
Prepaid Exp
Environmental Phase I
Accounting/Audit
Broker Fee
All amounts U.S. $ x 1,000
985,000
2.0%
9,000,000
0.2%
9,000,000
Total Closing Costs
Soft Costs
Arch
Interior Design
Engineering
Expeditor
Entitlements / Permits / Zoning Consultant
Construction Manager
Developer Fee
Insurance
Pre-opening Expenses
Interest Reserve (avg balance $9.0M at avg int rate of 10%)
Working Capital
Contingency
Total Soft Costs
Hard Costs
New Construction
FF&E
Contingency
Total Hard Costs
Total Hard and Soft Costs
180,000
0
0
50,000
10,000
18,000
0
10,000
0
0
268,000
Per SF
2.75%
2.75%
0.5%
of Hard Costs
of Hard Costs
of Hard Costs
2.0%
10.0%
1.0%
$1,000
of Hard Costs
of Hard Costs
9,000,000
per room
$2,000
5.0%
per room
$95
$6,000
5.0%
SF
55,000
per room
169,022
169,022
30,731
20,000
50,000
122,925
614,625
90,000
110,000
450,000
220,000
102,316
2,148,641
$39.07
Per SF
5,225,000
660,000
261,250
6,146,250
$111.75
8,294,891
$150.82
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Pro- Forma
All amounts U.S. $ x 1,000
No. of rooms
Rooms available
Rooms sold
Occupancy %
Average Rate Hotel
Year 1
$
110
40,150
27,704
69.0%
$149
%
Year 2
$
110
40,150
28,105
70.0%
$161
%
Year 3
$
110
40,150
28,507
71.0%
$169
%
Year 4
$
110
40,150
28,908
72.0%
$177
%
Year 5
$
110
40,150
29,310
73.0%
$186
Revenues
Rooms
Restauraunt Food & Beverage
Telecom
Other Income
Total Revenues
4,128
1,032
55
50
5,265
78.4%
19.6%
1.1%
0.9%
100.0%
4,523 77.7%
1,187 20.4%
56
1.0%
53
0.9%
5,818 100.0%
4,817 76.5%
1,365 21.7%
57
0.9%
55
0.9%
6,294 100.0%
5,129 76.8%
1,433 21.5%
58
0.9%
58
0.9%
6,677 100.0%
5,460
1,505
59
61
7,084
Departmental Expenses
Rooms
Restaurant Food & Beverage
Telecom
Other Income
Total Departmental Expenses
826
774
55
13
1,667
20.0%
75.0%
100.0%
25.0%
31.7%
1,085 24.0%
890 75.0%
56 100.0%
13 25.0%
2,045 35.1%
1,108 23.0%
1,024 75.0%
57 100.0%
14 25.0%
2,202 35.0%
1,128 22.0%
1,075 75.0%
58 100.0%
14 25.0%
2,275 34.1%
1,201
1,128
59
15
2,403
Operating Department Income
3,598
68.3%
3,773
64.9%
4,091
65.0%
4,402
65.9%
4,680
Undistributed Operating Expenses
Administrative & General
Marketing
Repairs & Maintenance
Heat, Light & Power
Franchise Fees
Total Undistributed Operating Expenses
316
105
211
211
211
1,053
6.0%
2.0%
4.0%
4.0%
4.0%
20.0%
378
116
233
233
233
1,193
6.5%
2.0%
4.0%
4.0%
4.0%
20.5%
378
126
252
252
252
1,259
6.0%
2.0%
4.0%
4.0%
4.0%
20.0%
401
134
267
267
267
1,335
6.0%
2.0%
4.0%
4.0%
4.0%
20.0%
425
142
283
283
283
1,417
Gross Operating Profit
2,545
48.3%
2,581
44.4%
2,833
45.0%
3,067
45.9%
3,264
Fixed Expenses
Management Fees
Insurance
Land Lease
Real Estate Tax
Reserve for capital replacements
Total Fixed Expenses
158
60
1,050
81
105
1,455
3.0%
1.1%
19.9%
1.5%
2.0%
27.6%
175
66
1,082
89
175
1,586
3.0%
1.1%
18.6%
1.5%
3.0%
27.3%
189
73
1,114
98
252
1,726
3.0%
1.2%
17.7%
1.6%
4.0%
27.4%
200
80
1,147
108
267
1,803
3.0%
1.2%
17.2%
1.6%
4.0%
27.0%
213
88
1,182
119
283
1,885
Cash flow before Debt Service
1,090
20.7%
995
17.1%
1,107
17.6%
1,264
18.9%
1,379
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Pro- Forma
Financing
Purchase Price (in millions)
Closing, Hard & Soft Costs
Total Purchase
Rate
Term
Debt
Equity for Purchase
Debt Service at Year 1
985,000
8,401,552
9,386,552
5.5%
25
60% 5,631,931
40% 3,754,621
415,020
Equity for Purchase
Cash Flow before Debt Service
Carrying Costs While Under Renovation
Insurance
Real Estate Taxes
Debt Service
Sale at End of 5th Year
Cap Rate
Loan Balance at end of 5th Year
Cash Inflows/Outflows
DCR
IRR
Per Room
8,955
85,332
Year -2
-3,755
Year -1
Year 1
1,090
Year 2
Year 3
995
1,107
Year 4 Year 5
1,264
1,379
-60
-81
0
-60
-81
0
-415
-415
-415
-415
-3,896
-141
675
579
692
849
-415
17,239
-5,028
13,175
2.63
2.40
2.67
3.04
3.32
8%
29%
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30 top cities for Hospital Lodging Systems
1. New York
2. Boston
3. Washington DC
4. Baltimore
5. Newark
6. Seattle
7. Las Vegas
8. Austin
9. Houston
10. Dallas
11. Los Angeles
12. San Francisco
13. Philadelphia
14. Phoenix
15. Cleveland
16. Chicago
17. San Jose
18. Detroit
19. Portland
20. Atlanta
21. Fort Lauderdale
22. Memphis
23. Miami
24. Charlotte
25. Nashville
26. Milwaukee
27. Denver
28. St. Louis
29. Cincinnati
30. Kansas City
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US Map for Hospital Lodging Systems
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Executive Team
James C. Bates, Chairman
James Bates has a long and successful track record in the hospitality industry for over 35
years. His innovative and dynamic approach to building brands, developing new product and executing
excellent return on investment makes him a sought after expert in the market. Mr. Bates has held senior
management positions with Hilton Hotels, Canadian Pacific, Best Western International, Hampshire
Hotels and Resorts, Helmsley Hotels, Boutique Hotels & Resorts International as well as several
independent properties and projects.
Mr. Bates has been instrumental in the development of lodging systems in conjunction with
Beverly Hills Hotel, Beverly Wilshire Hotel.
James Bates has served on several advisory boards including: Travel Industry Association of
America, Pow Wow Planning Committee, World Travel Mart, ITB Berlin, Luxury Travel Expo, Best
Western International EMAC Committee, Choice Hotels, Cendant Preferred Partners Committee, NYSAE
We Love New York Day Chairman and NYSAE Chairman Associates Committee, Hotel Sales & Marketing
Association International and Leading Hotels of The World Marketing Advisory Committee. Mr. Bates
has served on numerous Convention and Visitors Bureaus Boards of Directors and advisory boards
worldwide; and has participated on numerous panels and guest speaking engagements worldwide
including NAFEO Conference, Nixon Peabody IPED Conference and White House Initiative on HCBU’s,
and Shangri La Asia Conference.
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Executive Team
Allen J Ostroff – Hotel Dynamics
Mr. Ostroff’s 25 years as Managing Director of Prudential Insurance Company’s Realty
Group provides immense stability and a wealth of experience in structuring acquisitions,
development, asset management and financial structuring. His expertise and successes in overseeing
investments as well as operations in four and five star hotels –either wholly owned or in joint venture
- representing 30,000 rooms and 175 restaurants, adds significant management depth to focus on the
core issues of control, efficiency and delivering profits.
His profound knowledge of the hotel business allows him to lead the key due diligence
process and financial structure in hundreds of acquisitions.
Prior to joining Prudential, Allen served as the General Manager of the 1,000 plus room
New York Hilton, Operations Manager at New York’s famed Waldorf Astoria and Group Vice President
of Americana Hotels. His expertise in hotel operations and strict control of cash promises the delivery
of maximum cash flow from operations.
His professional affiliations include The American Hotel and Motel Association, New York
University, Cornell University and the Culinary Institute of America.
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Executive Team
Thomas Campiglia - Architect
Mr. Campiglia is an established member of the American Institute of Architects, A fellow of the
Frank Lloyd Wright Foundation, certified member of the National Architectural Review Board and is licensed to
practice Architecture in New York, New Jersey, Connecticut and California.
He has worked as a Senior Architect for the international firm of Ellerbe Becket Architects. He
maintains his practice as President of TCA Architecture, a professional Architectural Administrative Practice in
New York City.
Currently Mr. Campiglia is a consultant to Destination Hotels Partners, LLC, Lawyers Inns LLC,
Canyon / Agassi, Columbia University, Emblem Health Insurance, Mercy College and Ann Taylor Corporation. He
has extensive experience in both building renovation and new construction, and has developed designs for
Beaver Creek Ski Resort in Colorado, Woodlands Inn in Houston Texas, Kiahuna Village in Kawai, Hawaii, Squaw
Valley and various resorts.
Mr. Campiglia has received awards for his work with the New York City Center for Abused Children
for the design of Brooklyn Children’s Advocacy Center, a Merit Award for the Museum of Santa Barbara Design
Competition and recently received the Albert Meiniker Award for the design of a room for a child with spastic
quadriplegia.
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Hospital Lodging Systems
Global Corporation is a single holding company for all of
hospitality assets, including domestic and international hotel
operations, hotel real estate ownership and timeshare. Global
growth will continue to be driven through the development of
both traditional and new products as well as extensive
infrastructure, distribution networks and human resources talent.
Advantages of the HLS Brand
Investing in HLS leverages the expertise and resources of Global
Hospitality. No other global hospitality company can offer a
roadmap for growth this compelling. Developers will benefit from:
•Leading Edge Technology
•Global Sales Force
•Seating Area
•Café and Seating Area
•Central Reservations System
•HLS Loyalty Program
•Centralized Purchasing
•Global Branding and Marketing
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HLS Lodging
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HLS’s vision is to be the world’s premier hospital lodging
brand.
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We want to simplify our guests’ lives, and be one of the
world’s leading diversified providers of travel-related
products and services for business and individual
consumers.
•
HLS’s overriding goal: to be one of the world’s premier
branded hotel-operating companies. With HLS as our
base – we are becoming increasingly focused on serving
the hospitality lodging segment of the hotel industry.
•
Our underlying mission for our guests is provide a
consistent level of hospital in hospital lodging sector.
•
HLS’s core values: valuing our people, valuing our
customers, valuing respect, valuing integrity, valuing
accountability and valuing communication.
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Strategic Partners
Horwath HTL - Hospitality Consultant
JP Morgan Chase - International Bank
Ernst & Young – Accounting
Norton Rose Fulbright - Legal
Jacobs, Doland & Beer - Food Service Design
Hotel Dynamics, LLC - Owners Representative
Buy China Direct - FF& E Consultant
27
Strategic Partners
Horwath HTL
Horwath HTL is the largest specialist consulting network in this
sector, with 50 offices in 39 countries. Our unrivalled global reach is matched
by a unique depth of knowledge and experience gained from thousands of
projects over many years, in all kinds of economic climates.
We remain the number one choice for hotel and real estate
companies, as well as financial institutions looking to invest in the industry.
Whatever and wherever your project, we offer the reassurance of an
internationally consistent quality of service combined with local solutions.
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Strategic Partners
JP Morgan Chase
JPMorgan Chase is one of the oldest financial institutions in the United
States. With a history dating back over 200 years, here's where we stand today:
We are a leading global financial services firm with assets of $2.3 trillion.
We operate in more than 60 countries.
We have more than 240,000 employees.
We serve millions of consumers, small businesses and many of the world's most
prominent corporate, institutional and government clients.
We are a leader in investment banking, financial services for consumers, small
business and commercial banking, financial transaction processing, asset
management and private equity.
Our stock is a component of the Dow Jones Industrial Average.
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Strategic Partners
Ernst & Young
Ernst & Young is a global leader in assurance, tax, transactions, and
advisory service. Our 167,000 people are united by our shared values, which inspire
our people worldwide and guide them to do the right thing, and our commitment to
quality, which is embedded in who we are and everything we do. Ernst & Young is
committed to doing its part in building a better working world for our people, for our
clients and for our communities.
30
Strategic Partners
Norton Rose Fulbright
Norton Rose Fulbright has more than 3,800 lawyers based in over 50 cities
across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the
Middle East and Central Asia.
Recognized for our industry focus, we are strong across all the key industry
sectors: financial institutions; energy; infrastructure, mining and commodities;
transport; technology and innovation; and life sciences and healthcare.
Wherever we are, we operate in accordance with our global business
principles of quality, unity and integrity. We aim to provide the highest possible
standard of legal service in each of our offices and to maintain that level of quality at
every point of contact.
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Strategic Partners
Jacobs, Doland &Beer
Jacobs, Doland &Beer is a New York City based foodservice design firm
specializing in the planning and construction of all segments of commercial
foodservice and hospitality venues, both across the U.S. and overseas.
Jacobs, Doland &Beer specializes in developing back- and front- of house
foodservice solutions. Since one cannot thrive without the other, we use an
integrated approach to foodservice design to bring our clients’ concepts to life. We
strive to meet our clients’ needs - timelines, budgets, foodservice program
sustainability - without sacrificing the quality of the end result, whether designing
retail operations or high-throughput production kitchens. From initial concept
development, through design and implementation, Jacobs, Doland &Beer design
specialists work closely with owners, chefs, architects and engineers through all
phases of new construction and renovation projects.
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Strategic Partners
Hotel Dynamics, LLC
Hotel Dynamics represents the hospitality industry's top experts in asset
management, financing, owner's representation and construction management.
Hotel Dynamics will strive to maximize the value of your asset and capital through
extensive due diligence for acquisition, rebranding and repositioning, property
renovation, new construction and asset management.
Our Team will bring unmatched expertise to all phases of the asset's
lifecycle for a wide array of clients. The process starts with conducting due diligence
that will enable asset owners to make the right acquisition or development decisions.
We then transition our skills to managing the asset and formulating a plan to
reposition the asset for long-term profitability. In the event that the repositioning
decision includes any form of construction or brand PIP, we can seamlessly plan and
implement the construction and renovations.
33
Strategic Partners
Buy China Direct
BCD is a multinational company based in Guangzhou, China with offices in
US, Central America, and independent agents in South America, South Africa and
Australia. Our company objective is to be the leading world wide building materials
supply chain by providing factory direct materials straight to the developers' door
steps at tremendous savings. We specialize in interior finishes and decorative
building materials ranging from kitchen cabinets, bathroom vanities, tubs, toilets,
showers, taps and faucets, doors, windows, ceramic, porcelain, glass and stone tiles
to wood flooring and other decorative essentials.
We aim to give our clients the competitive advantage in today's ever
difficult market by adding a global perspective and allowing small to mid size
companies to order direct from the factories. We are your partners from the moment
we start to work together. We provide manufacturing, sourcing, QC, CAD design and
other logistic services direct to your doors step.
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