HOTELS, TOURISM & LEISURE nem is one of Australasia s largest boutique business consultancy firms, which is able to draw on the significant skills and experience of over 50 partners across Australia and New Zealand. All Partners are long-term contributors in their fields of expertise, having owned or operated within significant and sophisticated public and private businesses. Since its inception in 2001, nem Partners have worked exclusively with referrers and trusted advisors to businesses across Australia and New Zealand. At the core of the firm s approach to assisting businesses is its unique intellectual property, its focus on value enhancement, the wealth of skills and experience of its partners, their networks and the ecosystem of trusted third parties. 1
nem Hotels, Tourism & Leisure brings together a specialist team of experienced hospitality individuals along with a range of individuals with specialist skills with applicability to the hospitality sector. Jointly led by David Simpson and Ian Knight and supported by a team of sectoral specialists Hotels, Tourism & Leisure provides a unique service to owners and developers in the hospitality sector. Why We thrive on helping stakeholders to maximise their investment returns both quantitative and qualitative in the Hotels, Tourism & Leisure market. How Direct Experience We have over 100 years of direct industry experience including all aspects of operations, sales, marketing, business development, finance, regulatory, compliance and asset management; Specialist Skills In addition, we can draw upon specialist skills of experienced individuals in functional areas of accounting and finance, sales and marketing, human resources, engineering, supply chain, corporate governance and strategy across a broad range of industries such as retail, transport and logistics, manufacturing, information technology and professional services; Relationships We have developed working relationships with key industry stakeholders and experts, including investors and developers, financiers, lawyers and operators; and Market Knowledge We have an extensive understanding of the economics of the hospitality market in Australia, New Zealand and Internationally. 2
Services at a glance nem is able to provide a full range of services, support and assistance across the entire Hotels, Tourism and Leisure investment cycle. Acquisition Feasibility Studies Asset Identification & Selection Due Diligence Deal Negotiation Funding Debt & Equity Development Project Site Identification & Evaluation Concept Development Feasibility Preparations Hotel Brand & Operator Selection Investor Take-outs Management, Franchise & Lease Deal Negotiations Asset Management Profit Improvement Capex Expenditure Oversight Building Management Personnel Evaluation Disposal Pre Sale Asset Value Enhancement Sale of Hotels & Undeveloped Projects Project Management Vendor Due Diligence Deal Negotiation 3
Acquisition Assistance and Advice Feasibility Studies & Modelling Projected Income/ Cash flow Statements. Projected Return on Investment Analysis Yield, IRR and NPV. Asset Selection, Brand & Operator Selection Asset Selection to fit buyer s strategy and requirements asset type, location, size, star rating etc. Recommendations regarding suitable brands and operators. Recommendations regarding operator s commercial deal. Strata Title, Branded Residential & Mixed Use Projects Project Management & Due Diligence Identify risks and opportunities with the various structures. Manage operator concerns and requirements. Assist buyer by project managing the acquisition process. Liaise with lawyers, accountants, tax advisors and other professionals engaged to complete the process. Identification of risks and opportunities for the buyer. Manpower capability assessments. Evaluation of existing plant and equipment to assess required capital expenditure and maintenance requirements. Contract Negotiations Negotiation of the purchase agreement and operator agreements including management, franchise and lease agreements. Project Funding Identify and assist to secure potential debt and equity funding sources. Negotiating equity funding and syndication for major projects. Acquisition, Renovation, Redevelopment & Sale Preparation of asset strategy plans that help to achieve buyers investment requirements. Implementation assistance with plan execution through asset management. 4
Development Assistance and Advice Site or Project Identification Working with property developer s, help the buyer to identify the right project Location and evaluation of site alternatives Assistance in the negotiation of site acquisition Concept Development Through market research and using nem s cama IP identify the market opportunity Assist developer to deliver the most suitable concept to meet the market Brand & Operator Selection Operator EOI s based on required branding and required deal structure e.g. lease vs management agreement vs franchise Investor Take-Outs Investment analysis and financial feasibility for qualified take out parties Management, Franchise and Lease deal negotiations Negotiation around capability for fixed price turn key developments Commercial terms (term sheet) for operator and/or brand engagement Progressing to definitive agreement stage Asset Management Capabilities Profit Improvement Reporting and Benchmarking Revenue enhancement and cost reduction initiatives Strategic planning Personnel Evaluation Independent evaluation of the hotel s senior leadership team and recommendations for improvement Capital Expenditure Oversight and Building Management Review of operator capital expenditure requests Identify ROI capital projects for profit improvement Maximise P&E useful life and building maintenance 5
Disposal Assistance and Advice Brokerage Services Act as owner s advocate and advisor through the sale process Target list identification of potential buyers in off market transactions Work with licensed agents and specialist property marketers Develop a clear hotel concept for off the plan hotel sales Project Management & Due Diligence Pre-sale asset value enhancement Liaise with lawyers, accountants, tax advisors and other professionals engaged to complete the process Preparation of the information required for the vendor s data room Contract Negotiations Assist the seller to negotiate and prepare the sale agreements, operator agreements including assignment and assumption or termination agreements Interim Solutions Projects and interim roles The Partner group has the ability to assist with resources at short notice to support key positions and projects. 6
Lead Partner - Melbourne David Simpson Qualifications: Bachelor of Business (Hotel Management), CPA, MAICD David is an equity partner with nem Australasia and joint lead Partner for nem Hotels, Tourism & Leisure. David has over thirty years experience in the hospitality, tourism and property industry having started his professional career in 1980 as a hotel management trainee and department head working in a variety of operational roles. After graduating from university in 1985 with a Bachelor s Degree in Hotel Management, David specialised in accounting & finance working in senior roles for both private and publicly listed companies in Australia. From May 1997 until April 2011, David worked in various senior roles for Starwood Hotels & Resorts Worldwide Inc. including Director of Finance - Indonesia, Director of Finance - Australia, NZ & Pacific region and Director of Acquisitions & Development where he was responsible for the company s development growth plans in the Australia, NZ and Pacific region. Prior to joining nem in July 2013, David worked as General Manager for a privately owned joint venture company whose purpose was to own operate and develop hotel and tourism assets in Australia. David has extensive senior management experience and has over ten years experience acting as company secretary, company director and overseer of governance for a number of private Australian companies. David s recent consulting experience has included concept development, operator selection and commercial deal negotiation, asset management and acquisition due diligence for a number of private and public company clients. 7
Lead Partner - Melbourne Ian Knight Qualifications: BBus (Accounting) Professional Memberships: FCA; CPA; AFAIM; MAICD Ian is an equity partner with nem Australasia and joint lead Partner for nem Hotels, Tourism & Leisure. Ian has previously held senior positions in Accounting, Insurance, Banking and Investment Banking. Ian more recently has over 25 years experience in Mergers and Acquisitions with total sales exceeding $5bn covering many different industries. His experience in Hospitality Tourism & Leisure covers: Funding and funding assessments for Hotel Developments; Hotel ownership (Personal Account); Preparation of Resort Feasibilities for numerous developments in South East Asia; Capital Raising for Resort Developments; Formal valuations of over $3bn of Hotels for Banks; Member of Advisory Board for owner of two Boutique Hotels (Queenstown NZ) (current); and Member of Advisory Board for a 10 large format Restaurant chain (current). 8
Lead Partner - New Zealand David Shackleton Qualifications: Bachelor of Business (Hotel Management), CPA, MAICD David is an equity partner with nem New Zealand and lead Partner for nem Hotels, Tourism & Leisure New Zealand. David has over 40 years experience in the hospitality and tourism industry having started his professional career in London U.K as a management trainee. He has broad international exposure having worked in senior management and corporate roles within the hotel industry in Singapore, Bangkok, China, Korea, North America, South Africa, Australia and New Zealand. David has held Chief Operating Officer and Vice President roles for major multi- branded international hotel companies such as InterContinental Hotels Group, Starwood Hotels and Resorts and Dusit International. His roles have included responsibilities for businesses in the Asia Pacific, the Middle East and India. He has extensive commercial experience in such areas as operational performance, branding, sales and marketing, strategy and human resources. In 2016, David joined nem in New Zealand, an international firm of over forty partners that specialises in providing business advice and assistance to variety of enterprises, where he is an equity Partner. 9
Senior Associate Greg Sear Qualifications: MAICD Greg is a Senior Associate with nem Hotels, Tourism & Leisure. Greg has previously held senior positions in the hospitality sector, including the roles of Locations and Acquisitions Manager (Quest Serviced Apartments), Director of Operations (Mirvac Group), CEO (Saville Hotel Group for Stockland) and Group Operations Manager (All Seasons Hotels & Resorts). Greg has over 40 years experience in the hospitality industry within Australasia, regularly providing consulting services to both hotel developers and Owners. His experience in Hospitality Tourism & Leisure covers: Hotel/Resort Acquisitions (identification of suitable locations, preferred product and structuring of deals); Hotel/Resort Development Consulting services; Hotel/Resort Operations Consulting services; Hotel/Resort Management Consulting services; Operational feasibilities, product design and operational guidance in relation to new hotel projects; and Member of Institute of Company Directors (Australia) (current). 10
Hotels, Tourism & Leisure nem Australasia Pty Ltd 9.28, 401 Docklands Drive, Docklands VIC 3008 T: 1300 857 636 www.nem.net.au/hotels David Simpson Lead Partner Mobile: +61 418 474 600 Email: dsimpson@nem.net.au Ian Knight Lead Partner Mobile: +61 412 885 037 Email: iknight@nem.net.au David Shackleton Lead Partner New Zealand Mobile: +64 21 654 738 Email: dshackleton@nemnz.co.nz 11