Due Diligence Checklist (hotel) 1u1s5v

Majestic Hospitality MANAGEMENT Company

[email protected]

Due Diligence Checklist (Hotel//Resort) Property Inspection 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34.

Guest room list by room type. Summary of room types. Access to blue prints and a copy of the most recent survey. The latest inventories available for food, beverage, linen or other supplies. Deferred maintenance schedule. List all FF&E in need of repair or replacement. Copy of the most recent appraisal. A list of all capital expenditures during the past three years. Most recent inspection reports from the franchisor, along with any correspondences during the past year concerning franchisor inspections and PIP requirements.(Include any Emergency Contingency Plans) The latest health, fire, and hotel inspections from governmental agencies during the past year. Any and all lawsuits or threats of lawsuits, during the past year. Complaints, notices and citations from any governmental agencies, including sales and payroll tax notices. All insurance inspection reports, including workers compensation. Property and liability insurance loss runs, including workers compensation. Current property and liability insurance policies, including workers compensation. Any and all environmental audits and reports to include a copy of Phase I Environmental Report. Copies of all licenses and permits. Any and all ADA plans, reports, audits, or notices. A list of any loaned equipment belonging to vendors, and personal equipment belonging to employees or owners. A list of any inventories for furniture, fixtures and equipment including kitchen, banquet and office equipment. Copy of any management contracts or reservation referral contracts. Copy of any franchise agreements Copy of any renovation or upgrade (PIP) budgets required to comply with franchise requirements (or to meet market demands) A list of future reservations and bookings, including name of party, deposit received, rate guaranteed, dates and status. Occupancy and average rate the last three years. Capital expenditures for the last three years, with any current projections for expenditures. All architectural and engineering plans and specifications. All inspection reports, including health, fire, building and elevator. Copies of all studies, including all recent appraisals, market studies, environmental/engineering reports and marketing plans. Inventory of FF&E, supplies, consumables and inventories. (Include a hand count of all housekeeping towels, bedding, pillows, supplies etc.) Schedule of all insurance coverage, including cost and expiration. The legal property description. Copies of all service contracts, leases, franchises, licenses, permits, management agreements, union agreements and any instruments that the purchaser is expected to assume. Copies of all trademarks, trade names and copyrights. Details of any istrative action or litigation threatened or pending against the hotel. A list of employees, including name, position, Dept., salary and benefits.

35. List of all purveyors and sources of supplies and services.

Majestic Hospitality MANAGEMENT Company

[email protected]

Financial Information 1. From A - Profit & Loss Statements to include guest room statistics. 2. Three most current year-ended P&L (2011/2012/2013 and trailing 12-months to YTD. (Broken Down Monthly) 3. Most recent s receivable aging, advance deposit listing, guest ledger listing, and AP aging. 4. A list of income rent rolls with attached copies of income rental agreements including any amendments. 5. All property tax bills and assessments, real and personal, for the past two years. 6. Copies of equipment leases, property rental agreements, service agreements and contracts including any amendments. 7. Copies of all utility and maintenance bills for proration purposes. 8. Copies of all notes and mortgages currently encumbering the property. 9. Estoppel letters from any mortgage. 10. List of all tenants, rent rolls, deposits and term of lease.

Marketing and Sales 1. 2. 3. 4. 5. 6. 7. 8. 9.

STAR reports to include Summary Report, Monthly Trend Report, and Comp Set Response Report. Most recent year ended and current YTD room sales by market segment. Most recent Hotelligence report, if available. PMS reports showing guest profile by Source Codes and Rate Codes. A list of the top 25 s including rates, annual room nights and dollar volume. A list of all preferred s by company and rate. Current Marketing Plan and projections. Advance booking contracts and preferred corporate s to be made available for inspection. Hotel Website access codes/s etc…

Human Resources 1. 2. 3. 4. 5. 6.

Most recent payroll report and payroll summary report by departments. Any employee handbooks benefit booklets or outlines, group insurance plans, retirement plans, and any other benefits together with all amendments and modifications. Any employment rules, job descriptions, job checklists, and current memorandum notices to employees. Any employee agreements, bonus plans, and letters of employment. Staffing Guide budget. If a Union Hotel, any union agreement with attached exhibits, and copies of all grievances and responses filed by the union during the past twelve (12) months.

Approved by: S. Bukhari – CEO David Robin – COO