16th Apr 2015
A hotel concession is a very valuable thing, whether it is a luxury facility in a beautiful tropical setting – or the rights to run accommodations at one of our nation’s spectacular national parks. A hotel concession with the National Park Service can mean a virtually guaranteed volume of guests, high volume of ancillary revenue, and a high profile in the guest services business. In most parks, such a concession results in a very stable revenue stream in a unique location.
The Value of Consultancy
Hotel concession contracts with the National Park Service are unique legal constructions, however, and vary in significant ways from typical hotel or resort developments. Ascertaining the correct valuation of the concession is the first challenge, as the population of potential guests and their socioeconomic makeup, requirements, and expectations is very different from other developments like a luxury hotel or more modest accommodations.
However, there are certain restrictions placed upon the concession operation that are not common to private hotel operations. Some parks are seasonal, which means that when the Park is closed, the concession is closed. Additionally, the government is an unusual landlord, in that it has approval over the room rates set by the concession operator. What other landlord imposes such social goals on the operation of its lessees? And finally, the term of the concession contract is limited, so there is a competition periodically for the right to operate the facilities.
The second challenge is knowing how to bid for these periodic competitions, some of which require redevelopment of some of the concession’s facilities. These challenges require experience and knowledge – hiring a consultant with expertise on hotel concessions in the National Parks System is almost compulsory unless you also have worked in the field and know without having to ask how to approach the various challenges.
The National Parks system is a special and vital part of the country’s conservatory, and running a hotel concession within it requires a dedication to the ideals of the Parks system, as well as knowledge of the hospitality industry and a passion for serving the public. A consultant can take that passion and dedication and transform it into a bid and an appropriate redevelopment plan that makes your vision come true in a way that is both profitable and respectful.