Key MarginBoutique hotels. Real returns.
Independent boutique hotel investment researchUnited States

Scorecard

How should weights change for acquisitions or soft-brand decisions?

Key Margin research deskSection 09Page 7 of 15

Change the weights before reviewing submissions, not after seeing which supplier wins. Keep the same economic and evidence disciplines, but emphasize the decision’s principal risks.

Criterion Operator appointment Acquisition or major repositioning Soft-brand affiliation
Cash reconciliation 18 18 18
Demand and comparables 12 16 12
Total fees and alignment 12 6 14
Staffing and operations 10 8 6
Distribution economics 10 6 20
Capital plan 10 16 12
Downside liquidity 10 16 8
Owner control and exit 8 5 5
Team and mobilization 5 4 2
Reporting and assurance 5 5 3
Total 100 100 100

For an acquisition, add the actual purchase price, transaction costs, financing, initial capital and opening liquidity to the investment model. A high plan score does not establish an acceptable price. Report the buyer’s hurdle-based bid threshold separately from market valuation and any formal appraisal.

For adaptive reuse, do not allow these weights to substitute for building feasibility. Retain a separate fatal-flaw gate for permitted use, layout, access, building systems, structural scope and opening dependencies, supported by qualified specialists.

For refinancing, use the acquisition profile initially, but make lender-defined coverage, reserve access and maturity funding explicit approval conditions. For a pure software or research-adviser procurement, redesign the criteria rather than mechanically applying an operator scorecard.

See how weights change the comparison.

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