Run two comparisons: contractual economics on a common operating case, then the credibility of each operator’s proposed improvement plan. Otherwise, the most optimistic forecast can appear to be the cheapest or most profitable offer.
HVS identifies contract terms including fees, incentives, expenses, working capital, reserves, termination and assignment as operator-selection considerations. Our recommended RFP turns those categories into a mandatory response schedule. (website.hvshotelmanagement.com)
What should every bidder receive?
Provide the same historical accounts, property description, capital assumptions, decision timetable and owner objectives. Identify missing information rather than allowing each bidder to fill gaps silently.
What should every bidder return?
| Required submission | Normalization rule |
|---|---|
| Operating budget | Same account structure and opening assumptions |
| Staffing plan | Roles, paid hours, loaded compensation and shared allocations |
| Commercial plan | Separate market growth, share gains and channel changes |
| Fee schedule | Every mandatory charge and its calculation base |
| Capital requirements | Timing, funding responsibility and operating disruption |
| Contract terms | Term, approvals, tests, cure rights, termination and transfer |
| Transition plan | Systems, employees, reservations, deposits and reporting |
Our suggested scoring weights should be set by the owner before proposals arrive. Treat any weighting as a governance choice, not an industry standard.
A practical final-round exercise is to give each bidder the same downside scenario and ask what it would change, what it would preserve and how much additional owner cash would be needed.