1. Real Estate Development Key Steps Hotel Projects
GESIIC, Pantheon-Sorbonne, Paris
January 25th, 2013
Real Estate Development Key Steps Hotel Projects
Yilmaz KARAUC
Global Project Management

2. REAL ESTATE DEVELOPMENT PROCESS – KEY STEPS
AGENDA
Key Points
Overview of a development project key steps as Developer
Existing & Take-over projects key steps as Developer
Project Structures in following cases:
Hotel Operator is the Developer
Hotel Operator leases or acquires after Completion
Hotel Operator is only Hotel Manager
Questions 2 2

3. Key Points
In Real Estate Development Process the followings are crucial:
Sequential process
Deliverables
Internal Validations
Accountability
Program Optimization
Cost Certainty
in order to ensure project completion:
within the Budget & Time
and in compliance with the Product and Technical Guidelines.

4. Overview Of A Development Project Key Steps
Development / Investment Committee
Program Committee
Program Committee
Tender
Mock up Room
Handover
Hotel Opening 1 2 3 4 5
Key Steps
Project Assessment & Feasibility Analysis
Project Detailed Program & Preliminary Studies
Project Final Program & Detailed Studies
Project Works Execution & Follow-up
Project Delivery
& Hotel Opening
Pre feasibility & Market overview
Preliminary Cost Plan
Site identification
Concept Design
Techn. Feasibility & Constructability Study (Technical File)
Initial Cost Plan
Business Plan
Program analysis & optimization
Detailed Hotel Program
Base building Schematic Design
Interior Design Brief
List of proposed interior designers
Project Structure
Updated project cost plan & time frame
Final version of the Program
Detailed Interior Design & Landscape drawings
Final Project Budget
Project time schedule.
Design Development
Tender file
Tender for works
Beginning of Works
Execution studies
Mock up room
Execution of works
FF&E integration
Project Delivery validation
Pre-opening phase
Hotel opening
Steps’ Content

5. Existing & Take Over Project Key Steps
Development / Investment Committee
Program Committee
Program Committee
Tender
Mock up Room
Handover
Hotel Opening 1 2 3 4 5
Key Steps
Project Assessment (DD & PIP) & Feasibility Analysis
Project Detailed Program & Preliminary Studies
Project Final Program & Detailed Studies
Project Works Execution & Follow-up
Project Delivery
& Hotel Opening
Pre feasibility & Market overview
Site Identification
Preliminary Business Plan
MoU / Due Dilig.
Property Improvement Plan
Concept Design
Techn. Feasibility & Constructability Study (Tech. File)
Initial Cost Plan
Business Plan
Agreement for Acquisition
Program analysis & optimization
Detailed Hotel Program
Base building Schematic Design
Interior Design Brief
List of proposed interior designers
Project Structure
Updated project cost plan & time frame
Work Permit & Acquisition
Final version of the Program
Detailed Interior Design & Landscape drawings
Concept Mock up Room
Final Project Budget
Project time schedule.
Design Development
Tender file
Tender for works
Beginning of Works
Execution studies
Contractor Mock up room
Execution of works
FF&E integration
Project Delivery validation
Pre-opening phase
Hotel opening
Steps’ Content 5

6. HOTEL OPERATOR IS THE DEVELOPPER Project Structure6 6

7. Hotel Financing, Development & Operating Proposed International Scheme
HOTEL GROUP WORLDWIDE
LOCAL BANK
Loans Agreement
35 / 65 (equity / debt)
100%
LOCAL HOTEL
INVEST. & OPERATING
CO.
LOCAL HOTEL
OPERATING & DEVELOPMENT
JOINT-VENTURE CO.
LOCAL PARTNER
INVEST. & DEVELOPMENT
CO.
51%
49%
100%
100%
HOTEL
Op Co
HOTEL
Prop Co
HOTEL
Op Co
HOTEL
Prop Co
HOTEL
Op Co
HOTEL
Prop Co
Management Contract
Licencing Agreement
Technical Assistance
Construction Contracts
Asset Management
Lease Contracts

8. HOTEL OPERATOR LEASES / ACQUIRES AFTER COMPLETION Project Structure8 8

9. HOTEL OPERATOR LEASES AFTER COMPLETION Proposed Lease Structure9 9

10. HOTEL OPERATOR IS ONLY HOTEL MANAGER Project Structure10 10

11. END
THANK YOU
Contact : Yilmaz KARAUC 11 11