Certified Reports

Certified Reports

It's essential that you present your bank or other lender, with a professional and comprehensive report. Sometimes, a lender (or investor) will also ask for an independent, professional due diligence review - by a consultant, accountant or other independent person or firm. The lender is essentially seeking a second opinion, to assist in its financing decision. In part, the lender wishes to see that not only the mathematics are correct (always correct with XiScope Hotel), but that the underlying assumptions and estimates are reasonable. This is where XiScope Hotel can help you.

In collaboration with DGiCo, a leading London England-based hotels and leisure consultancy which has undertaken hotels and tourism projects in over 135 countries worldwide, XiScope offers a Report Certification service, for a single fixed price. Your report will be professionally reviewed and, if required, we will assist you online to modify your report so that we can certify it as meeting an acceptable professional standard.

Using XiScope Hotel Certified Reports process, means you will not need to go to an accountant or other third party, with all the additional time and cost that would be entailed. XiScope will provide you with a professional and experienced hotel consultant who can 'sign-off' your report with a bound-in certificate and "lock' it, ready for presentation to a lender or other investor.

Certified Report content

The Certification by XiScope/DGiCo Ltd will include the following certificate wording:

We have reviewed for appropriateness and reasonableness, the main inputs and assumptions including, but not limited to, the following:

Full Market & Financial Analysis Certification items

1. the defined competitive supply
2. the reported room occupancies, average room rates and market demand mix amongst the competitive supply
3. the projected growth rates by market demand sector and estimates of created or latent demand
4. the projected penetration rates of each market sector by the Proposed Hotel
5. the projected average room occupancies and the stabilized year of operation taking into consideration seasonality of demand and future competitive supply
6. the projected double occupancy factors by market sector
7. the Proposed Hotel's projected achieved average room rates taking into consideration achieved rates amongst the competitive supply and industry discounting trends by market sector
8. the average food and beverage (F&B) spends by major F&B outlet
9. the projected utilization from in-house guests and external "chance" demand
10. the average spends for other operated departments (OOD) and the projected utilization by in-house guests
11. the projected other expenses for operated departments (Rooms, F&B, OOD)
12. the projected cost of sales for F&B and OOD
13. the projected other expenses for non-operated departments (Administrative & General, Marketing, Energy and Property Operations & Maintenance)
14. the proposed staffing levels and payroll & related expenses relative to the market positioning of the Proposed Hotel, projected room occupancies, and the extent of F&B and OOD outlets
15. the projected Gross Operating Profit percentages
16. the estimates of inflation during the projection period
17. the projected Reserve for Replacement of FF&E relative to total revenue
18. the projected basic and incentive management fees, and any other management company-related fees (franchise fees, central reservations fees)
19. the projected property taxes and building insurance premiums
20. the projected construction and/or development costs of the Proposed Hotel
21. the assumed debt:equity ratios, and financing terms
22. the assumed capitalization rate to determine the assumed sales value used in the investment analysis

A Certification of the Financial Analysis only, would include Tasks numbered 5. to 22. inclusive.