Operator Search

“It’s not just about finding an operator; it’s about finding the right one and on the right terms. This is a process that even experienced businesspeople should not embark on unadvised.” – Grant Thornton

In a quickly changing hospitality landscape it’s of paramount importance to choose the right partner to safeguard your investment. HDS can assist in identifying and negotiating with the potential domestic or international operators of your proposed development; hotel, restaurant, bar, resort, or other asset; and we can provide information on the terms and conditions that would be appropriate for your facility. Regardless of if you’re interested in finding a lessee, managing team, or franchisor HDS can assist you with our deep network and deep knowledge. We also specialize in assisting stakeholders who desire to rebrand an existing property or to attempt to resuscitate a distressed concept. 

Negotiating and closing dozens of operator search processes each year, we can put our network of global contacts, library of contracts and Letters of Intent, and our specialized teams at your disposal. Your success will come via the right concept, the right brand, and the right people but the real foundation for a long-lasting collaboration is set on constructing a well-crafted agreement at the onset of the process. Engaging the [best fit of a management team is an essential task to be tackled early in the development process – to allow the management to identify with the brand identity, service standards, and guest expectations right from the onset. Through our extensive experience we know the offered rates from most players in this ecosystem – we ensure you’re not on the disadvantaged side of an agreement and consenting to operator’s capitalizing on your lack of knowledge when setting costs. HDS works entirely on YOUR side – saving you money by not holding preferential, ‘cozy’ arrangements with potential service providers or vendors. Our advisement teams are 100% composed of professionals who have been actual, successful operators, who fully understand the practicalities, realities, and expectations of these contracts. We ask your candidates the hundreds of questions that need to be answered, and importantly, we know the “correct” responses. Lastly, we work on a contingent basis. The bulk of our payment only comes due after key, mutually agreed upon milestones are reached.

The comprehensive process of management contract negotiation may last many months, though we have many stopgap solutions that we can offer you in the interim to ensure continuity of your operations. 

We run a structured, open, and transparent selection process in two phases – two complimentary disciplines that work in tandem. After meeting with you to lay out your comprehensive vision, parameters, and objectives, we put forward a brief, an Operator’s Package, to identify potential candidates and gauge interest. This may be delivered through a Request For Proposal or via direct solicitations.  We meticulously screen respondents looking for the very best, reputable, and suitable candidate to essentially become your long-term business partner – one who is responsible for the day-to-day operations and decision-making of your property. Their strategies, decisions, and standards of guest service not only will have significant impact on your key performance indicators but will have critical [impacts] on yours and your brand’s reputation. We will conduct a professional review of all submissions, checking all details and fine prints, weighing pros and cons, and examining all possible consequences of any issues which might arise. HDS has a highly refined, formulaic process in place to check the cohesion of hundreds of variable criteria we check to facilitate the perfect owner-operator match. We rigorously interview the most promising prospects and perform all requisite background inspections and due diligence. During this competition our top concern is ensuring that the potential operator’s vision aligns squarely with your own. We select the preferred bidders after evaluating the various project proposals received based on their expertise, market penetration, brand strength and reputation, compatibility, and their ability to drive positive business and additional revenue to the property.

In phase two, deliverables include obtaining firm letters of intent from shortlisted candidates, sharpening Heads of Terms, and after consultation with you the delivery of detailed term sheets to those firms and individuals. 

We schedule the leading candidate’s introductions and presentations to ownership, attend those presentations, and conduct a joint evaluation with the owners afterwards – steering the final recommendation and eventual selection. We guide you through the entire negotiation process to ensure you sign on the best possible terms with a clear understanding of what each of the various clauses entail. Most important to us is that the final contract itself is mutually fair and balanced.

Our proven approach in operator selection has led to return engagements with most of our client base, letting you and your team rest easily knowing you are making the best possible choice.  In the event that things go wrong in the future, as occasionally will happen, we can support you with dispute resolution – including arbitration, mediation, and litigation support. We’ll provide expert witness testimony as necessary regarding leases and management or franchise contracts, and we have teams of forensic accountants and tax specialists standing by.