Resort Co-Developer, Resort Finance Facilitator, Resort Project Evaluator

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Global hotel and resort operator of luxury properties with several major international brands and operators. Official voice of the hotel and restaurant industry, enthusiastic leader of the team re-inventing hospitality with Cirque du Soleil, junior cook at Maxim's in Paris and a member of the Distinguished Alumni of the Waldorf Astoria. Sometimes a cynical observer of the hospitality industry changes and shortcomings. Co-Developer of a limited number of luxury resort properties.

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Testimonials

  • Dr Gerry Allison, Wimberley Allison Tong & Goo (WATG)
    Dr David McMillan ,The cloak of Doctorship is not a one size fits all type of garment. Only someone who has proven to be exceptional in his field is fit to wear it. You, David, are most certainly the right size. I am honoured to be your tailor. Congratulations and thank you for your wisdom and friendship.
  • Linked In. Top 1% searched in 2012 amongst the 200 million members
    David McMillan is amongst the Top 1% searched in the 200 million member Linked In Network. Now if he can just get his Twitter Followers to ramp it up at @hoteldeveloper he can start to lay claim to really being connected!!
  • Jeff Weinstein, Editor In Chief, Reed Business Information, a division of Reed Elsevier Inc
    “David is a seasoned and affable hotel professional with outstanding contacts around the world. He has a very strong grasp of both the operational and investment side of the hotel business and was a great ambassador for the business while president of the International Hotel & Restaurant Association.”
  • Camille Ducharme, Director of Operations and Assistant Manager, Commonwealth Hospitality Ltd.
    “An authority in the hospitality industry, David is a natural leader who relentlessly achieves target objectives through strong personal relationships without compromise. His vast global experience in all aspects of the industry make him, without doubt, a business partner of choice.”
  • Gary Dodds, Regional VP Human Resources - United Kongdom, Ireland, Middle East & Africa's 82 hotels, Marriott Hotels International
    “I had the pleasure for a number of years recently to serve on the International Hotel Associations HR committee, which David chaired. He was a passionate, direct leader and adept at getting the best out of people for the association and industry; encouraging support for those in other countries most needing help. He was also a powerful advocate of the industry's opinions with government bodies in each country, with global associations who could effect our industry and on consultation committees who could impact our industry. Great focus and professionalism.”
  • Alan Orlob, Vice President, Marriott International
    “David was extremely helpful in organizing a task force to deal with crisis management in the hotel industry when it was most needed. His organization and public diplomacy skills were assets that helped to bring a diverse group of people together. I am happy to recommend him.”
  • Hiran Cooray, Managing Director, Jetwing Hotels
    “Within a very short period of time, David was able to win the hearts and minds of members of our association with his focus on reaching out to all of them. He had patience and the skills to handle the many demands of the members, while having his long term plan to take IH@RA to greater heights. I wish he was allowed to stay on for a few more years” http://www.jetwinghotels.com
  • Paul Moxness, VP Corporate Safety and Security, Rezidor Hotel Group
    “David facilitated the creation of a global council for safety, security and crisis management for the hospitality industry that brought together a panel that cooperated on these important issues at a critical period in time. I found David to be an excellent communicator who was well-connected, well-organized and an extremely pleasant person to work with. I highly recommend him.”
  • Michael Hirst. CB Richard Ellis. Former President Hilton International
    "I do believe your stewardship of the IH&RA has made a considerable impact on its good standing and substantial progress achieved to make it a meaningful and influential organisation."
  • Peter Yesawich
    "You represented the Association in a very professional and persuasive manner, and I suspect your talents will be missed greatly."
  • Ruud J. Reuland, General Director, Ecole Hoteliere de Lausanne
    "I thank you personally for all your efforts to bring education and industry together: you had in my opinion a great vision."
  • Santoso Hanitijo, Vice President Jardin Sinomonde
    "I was most impressed with their ability to work with owners of different nationalities while maintaining a high standard of hotel management."
  • Mr Curt R. Strand, Senior Consultant, American Express Bank
    "I have the highest regard for your qualifications in large, upscale hotel operations. I can also attest to your high ethical standards and professionalism."
  • Juergen Bartels, Chairman WESTIN Hotels & Resorts
    "It is unusual when people of this high calibre get together to form a management company. Westin Hotels & Resorts would be very pleased to work with them to manage a high quality Westin Hotel or Resort"
  • Ken Hine, Former Pres & CEO, AH&LA and IH&RA
    "It is rare to fine this blend of experience and focused skills brought together in one company. The combination presents a set of resources which are hard to duplicate"

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« October 2014 | Main | May 2015 »

TOP TEN RESORT DEVELOPMENT TRENDS & MYTHS

IT IS TRAGIC TO SEE INTELLIGENT BUSINESS EXPERTS THROW ALL CAUTION TO THE WIND AND BLOW THEIR BRAINS OUT WHEN DEVELOPING A RESORT.

Acting as we do as the first line of defence in a developer's quest for financing, we see the best and worst of the World's Developers and their very obvious blinders and blunders.

There are a couple of wonderful TV shows on the television in the Americas and Europe that deal with entrepreneurs pitching their projects to a panel of experts. Questions are asked and the entrepreneurs have but a few minutes to gain the interest from a panellist and obtain the investment directly.

We do similar work on behalf of an Investment Bank but we focus mainly on hotels & resorts.  Beach

Here is a cynical look at the hard work of many an entrepreneur and where many of them seem to go askew.

  1. Great Idea! Let's just do it! We have decided we have this great idea and we need your money to back our risk, no questions asked. Appealing to my sympathetic ear because I know resorts, the developer fails to realize that the investors & lenders want independent advice and proof from experts that the project will work.
  2. Find me a partner, quick. Isn't it funny how developers look for partners when they really need a lender or they are looking for a lender when they really need a partner. Yes the Capital Stack is part of the financial architecture and it takes as much expertise to structure the Capital Stack as it does the Chimney Stack. Some owners & developers fail to realize that they don't need to give up valuable equity to get the financing. On many occasions we can structure the loans to preserve the equity.
  3. Yup, we'll create our own brand. No need to pay those Big-Boys a ton of fees when all we need to do is create our own. We have this idea for a Spa and we have already designed the name and logos. The reality is that your brand will need to have name recognition in the geographical markets that feed your property..........plus 14 other critical components.
  4. Hurry, the World Cup is coming in 2 years. The Prime Minister has asked us to hurry our plans along and build the hotel for the World Cup. It is coming in two years........for two weeks! Hotels & resorts have been built for the Olympics, a Convention, the Pan Am & Pan Asian games and countless other lousy excuses. They need to be planned for 2 decades of success, not 2 weeks, but why would the Prime Minister care?
  5. Just sell it. A property ready for development has the plans bought and paid for, approvals in place, an operator ready to take it on and everything ready but he tells his Broker, 'sell it', not realizing that if all is ready, develop it and then sell it for a multiple of what he would sell it for now.... but why would the Broker care?
  6. Need grocery money too! Know how to make a small fortune in the resort industry?Start with a large fortune!! Yes, many spend their whole fortune on architects, plans, approvals and glitz and then start looking for the financing but are so desperate that they need not only the $75 million but some extra for the groceries but why would the architect care?
  7. I want it now, not in 3 months. Faced with the reality that it takes 3-4 months to source the financing and having spent three years already looking, there is no patience to take the 3-4 months necessary and do it properly.
  8. My cousin did the Study & it works. So many developers do the projections and financial assumptions through close friends or family or even the village accountant not realizing that the capital sources will want to have a recent study done by an independent, recognized Consultant company and that the value of one done by someone close to the developer has zero credibility but why would the village accountant care.
  9. What's wrong with 50 rooms & 2 restaurants? Do we really have to explain!!
  10. Where's the budget? No sir, a Construction budget is not a development budget!! So many developers prepare a detailed construction and fit-out budget not realizing that a full development budget contains many other line items which will have to be covered. For us, this is a clear sign that we are dealing with students. 

I make my wife furious when I go to the Doctor and offer my own diagnosis!! I think this situation is somewhat similar. Allow the specialists the freedom of telling you if your property will live or die and listen very, very carefully. The fortune you lose may be your own.

Here then summarized are my TOP TEN TRENDS as Myths,

  1. My ideas, your money and your risk.
  2. Money is just money.
  3. Creating a brand is simple stuff.
  4. Special Events are profitable.
  5. Sell low so others can benefit.
  6. Spent it all. Nothing left to finish.
  7. Patience is not needed for financing.
  8. Independent consultants are credible.
  9. Hotel restaurants make money.
  10. Partial budgets are cheaper.

For any and all enquiries on financing of hotels and resorts, consult a specialist and make sure that you have all the financing before spending on anything.

For further information contact [email protected] or visit Axis Hotels & Resorts

 

Posted at 03:07 PM in CYNIC'S CORNER, DESIGN TRENDS, DEVELOPERS & OWNERS, DICTATORS, PRESIDENTS & PRIME MINISTERS | | 0 Comments

What we can do for you

  • Co-Development
    The capacity and resources, the expertise and imagination to provide the Pre-Planning of a Resort Project in 6 months followed by a period of facilitating the Financing in 3-4 months.
  • Global Hotel & Resort Financing
    Financing, re-financing, equity or loans, construction loans, Mez-financing for major, credible hotel & resort projects between $50 and $300 million +. We work with credible sponsors anywhere in the world.
  • Brand Selection & Contract Negotiation
    Assistance to owners who are suspicious of hotel operators selfishly selling their own brands! Providing independent, un-biased help to determine what is best for the property and the owner.
  • Cuba Hospitality Advisor
    Strategic, practical advice on how it works regardless of which Castro is in the driving seat. How the system works now and where are the obstacles. Where do they have to make changes? Where must we adjust?
  • New Hotel/Resort Development
    Conceptualise, Business Plan, Pre-Opening Prep & Open. Done it a few times. Should be fun. Definitely save you money. Will do it anywhere!! Well, almost!!
  • Manage or Plan Pre-Opening & Opening
    In a bind with the manager tripping over construction, architects, management company, brand, designers and equipment suppliers. Call us and we'll put order back into the day and save you money.
  • Space Planning
    Assist the Architect and Interior Designer to create cost-effective, user friendly, inter-active spaces in the FOH and BOH areas. The result......great savings.
  • Manage Your Hotel or Resort
    Could mean takeover the management for a short time or a long term. Might involve managing the 'status quo' or making some improvements in quality or profits.
  • Development for Dummies
    Assistance in taking your idea for a hotel or resort and making it a reality, if feasible.... or not.
  • Cuba Resort Specialist
    Strategic & basic down to earth advice on Management Opportunities, Joint Ventures as well as Resort Operations & Development.
  • Profit Engineering or Break-even Analysis
    Have never forgotten this lesson Q(P-V)=F+ Profit desired..... which has helped me re-build restaurant profits, re-position failing assets and energise supervisors, staff and management. Works for the cornerstore as well. It's fun too!
  • Should you develop....or not!
    Too many projects go forward with support from those who will benefit without risk. The fortune that you save may be your own.
  • Design Resolutions
    Off the Cuff resolutions that have saved 'big-time'.....from a beach solution on a rocky coastline, an innovative new design for a banquet dish to a carnival menu for a travelling circus.

Some of our Great Clients

  • InterContinental Dhaka Bangladesh
    Assisted the government Owners of the former Sheraton Dhaka to re-position, recruit and select a new Brand/Operator. Assignment required that the iconic hotel project be rejuvenated, rooms enlarged & totally brought up to a competitive Five Star position. InterContinental was elected and the project successfully completed.
  • Le Meridien Hotel & Conference Centre, Oran, Algeria
    Assisted Sonatrach, the largest company in Africa develop, design, brand, build and open Le Meridien in Oran Algeria through Canada's Genivar (now WSP Group) that supported the developer in architecture, engineering and project management.
  • Marriott Chateau Champlain, Montreal, Canada
    Strategic Planning and consulting on ownership, management and strategic direction of two major full-service branded hotels in Canada including the iconic Chateau Champlain.
  • WSP Group Canada (formerly GENIVAR)
    One of Canada's largest engineering, architectural and project management companies. About 5,000 employees, more than a hundred offices. Great hospitality projects....new builds, renovations, restorations, resorts' master-planning, re-positioning and re-branding.
  • University of Western Ontario (Canada)
    Analysis and develepment of a Strategic Plan for the operation and financial turnaround of Spencer Hall, a hotel & conference facility co-owned by the prestigious Richard Ivey Business School and the Bank of Nova Scotia.
  • Hospitality Investors Group (Canada)
    Takeover and management of the Hotel Constellation in Toronto. Redevelopment and planning for the repositioning and re-branding of the hotel and its convention and public space, the largest of its kind in Canada.
  • WHS Resources (Malaysia)
    Feasibility and planning for the development of a mid-scale hotel in Shah Alam Malaysia, development of a Master Franchise for a major European chain and evaluation of resort opportunities in Malaysia.
  • Villa Bellevue (Mont Tremblant)
    Development of plans for the owner for the renovation, expansion and re-positioning of the Villa Bellevue under a plan that involved both hotel and restaurant brands and franchises.
  • Thibault Messier Savard & Assocs (Canada)
    Strategic Planning and consulting on ownership, management and potential opportunities of two major full-service branded hotels in Canada.
  • Red Deer Holdings
    The pre-opening, opening, management and performance reviews of the 690 room El Senador Resort in Cayo Coco, Cuba. A strategic review and three year plan was developed & implemented.

Some Interesting People I've Met

  • Barry Sternlicht
    The ultimate Industry leader, bright, brilliant and the founder of Starwood Hotels, Starwood Capital and, I believe, the Heavenly Bed. Decisive, incisive, innovative and probably impatient. Did it all (almost) straight out of University!!
  • Disco Sally
    In Acapulco's disco-crazy days, Disco Sally was a a great presence with a late night party girl reputation to match. Famous from her days (and nights) at Studio 54, she became a friend and occasional dance partner.
  • HE Dr. Chakib Khelil, President of OPEC
    A brilliant, multi-lingual businessman and charming leader. It was a priviledge to observe him in action, wasting no time at all in listening carefully and then making a well-considered conclusion.
  • Conrad Hilton
    Introduced amongst many others on his tour of the Waldorf Astoria, where I was an Assistant Manager. Some five years later he crossed the restaurant to shake my hand and incredibly remembered my name. WOW, what a lesson!
  • Martin Luther King
    Writing a book in the neighbourhood of Jamaica where I was a middle manager at the Jamaica Hilton, a favourite of his for a periodic lunch break....such a charming, magnetic gentleman.
  • The Beatles
    "Sir....these boys have no money and no credit cards. Can I give them a couple of rooms". "We have a gig here tonight and we'll pay you tomorrow". I okayed the credit. They were to become regulars at my Oxford hotel in the early sixties. Scraggy hair but nice chaps. They did better than I did.
  • John Kennedy Jr
    The young John was a frequent visitor to the Dominican Republic where we ran the Hotel Santo Domingo. John often visited me in the office when he needed the limo to get over to Casa de Campo.
  • Presidente Jose Lopez Portillo
    During our time at the Hyatt Regency Acapulco, the Lopez Portillos were our regular guests, most often his first wife, Carmen Romano who ordered the suite and all rooms on that floor often with little more notice than 24 hours, or else! Some high level people were thrown out with little more than sincere apologies from management.
  • Uri Geller
    The world's most famous paranormalist was our dinner guest every night for weeks when he was a judge at the Miss Universe Pageant in the Dominican Republic. The hotel lost a few bent spoons during that stay but we loved every minute of it. He even produced his girl friend's ring from her hotel room across town which magically dropped from our suite's ceiling over cocktails.
  • Presidente Anastasio Somoza Debayle
    Although I was able to meet the 45th President of Nicaragua and shake his hand on arrival at the Hotel Santo Domingo, there were so many people around him, I did not actually meet more than his hand. Perhaps the most protected person I ever almost met.
  • Bob Barker
    The Price is Right's famous host was the Host for the Miss Universe Pageant at the Hotel Santo Domingo. He was a lot of fun and always very professional. Heard that Bob has just retired after 50 years. Enjoy it Bob, you earned it.......plus a bit!
  • Cher
    Wow, invited to her house party in Beverley Hills while I was trying to kick-start Frenchman's Cove hotel in Jamaica. She lives the life of her Show at home too!!
  • Julie Andrews
    Friend of the family, in fact married my cousin, Tony. Such a wonderful, warm person who I caught up with again last year in a Disney event at the World Travel & Tourism Council conference in Washington DC. My Chinese dinner companions nearly 'wet themselves' with joy!!
  • Peter Lawford
    Member of the Sinatra ratpack and periodic and regular resident of the Savoy Hilton where I got to know him well. Reputed to polish off his full-bar that had a $600 value in the early 60s in his first night. Doesn't sound like much now!!
  • Isadore (Issie) Sharp
    A more gracious individual I am unlikely to meet. He called me virtually every day (in the mid 70s)! I had opened the first purpose-built Four Seasons in the world and he was interested in our progress each and every day. His personal taste drove the standards of design and service and I imagine still does, strongly supported by his wife, Rosie.
  • David Ben-Gurion
    Israel's founding father and First Prime Minister and First Defence Minister of the State of Israel...... a great guest at the Holiday Inn Toronto Downtown and so easy to talk with.
  • John Scarne
    Casino co-operator at the Curacao Hilton where he became a close friend. Wrote the book to which Casino Managers stick closely. The greatest card manipulator in the world, advisor to the US Government and the Mafia......at the same time. Author of "the Odds Against Me".
  • Sammy Davis Jr
    Invited backstage to his Philadelphia pre-Broadway Show, " where I also met the late James Brown. Sammy was the same off-stage as he was on......an absolute unadulterated scream!!
  • Zsa Zsa Gabor
    Permanent Resident of the Savoy Hilton New York who begged to attend one of my parties that she heard me organising from the back office while she played with her safety deposit box. Needless to say my guest was a great hit!!
  • Wayne Gretzky
    The Great One.....Fun-loving Prince Charming who hosted an annual Charity Tennis Tournament to which we were invited every year.
  • Osmani Cienfuegos
    Architect and illustrious Former Minister of Tourism of Cuba and brother of Camilo, friend of Fidel and one of the most interesting dinner-time storytellers of my career.
  • Ambajador (Capitan) Jose Sandino
    Nicaraguan Ambassador to the DR and permanent resident of the Hotel Santo Domingo. We spent most free evenings with Jose. He loved his "Something Special" scotch and his tempestuous route to becoming 'persona non grata' in Nicaragua was fascinating.
  • Harry Belafonte
    At the Jamaica Hilton in the mid 60s, he spent an interesting few days when he gained a dubious reputation from the Jamaican staff for being stand-offish!!
  • T.H.White
    Famous British novelist and friend of the family. Spent several wonderful days with him in New York sightseeing while he prepared his US Tour for the "The Once and Future King" from whence came "Camelot". Always dressed spectacularly in tweed cape and Sherlock Holmes style hat, he walked so fast, I needed to jog to keep up!!
  • Fidel Castro
    Such a powerful communicator whose eyes seemed to penetrate mine and burn the back of my skull as we spoke. I will never forget the experience. I imagine that he has!!
  • Peter Sellers
    His Mum stayed with us at the Woolacombe Bay Hotel arriving with her chauffeur in high style. Peter came a couple of days later and was a wonderful guest and so human and easy to talk to.
  • Tony Roche
    Was our travelling celebrity tennis pro at the Hotel Santo Domingo/Casa de Campo. I played a demonstration game which he played with his 'other hand', right instead of left. I hardly made one point!! Such a real sport!
  • Margaret Rutherford
    A very regular client for lunch in the Mitre Hotel Oxford when I was Assistant Manager, often at the same time as Winston Churchill. Margaret always tipped me 'half a crown' on leaving which I promptly turned over to the Restaurant Manager.
  • Bob Evans
    The Hotel Santo Domingo...a Charles Bluhdorn, Gulf+Western/Paramount connection of which Bob was the President. One of the most unreasonable clients in my career.
  • Oscar de la Renta
    Designer and stylist for the new Hotel Santo Domingo which I opened. Decisive and a perfectionist. His paint colours and towel choices were as great as his 'haute couture' designs. Perhaps one of the first to see the connection between hospitality and design.
  • Julio Iglesias
    A regular with us at the Hyatt Regency Acapulco to get away from the spotlight, becoming a close friend and fun dinner companion. Absolutely charming and according to Venice......."very good looking!!"
  • Petula Clark
    As a Room Service waiter at the Villars Palace, I delivered her dinner every evening during her engagement. We politely struggled through in French until we both realised we were both English. It became easier instantly for both of us!!
  • Winston Churchill
    Sitting alone at his table in the Mitre Hotel Oxford for lunch regularly, a true gentleman with everyone and a few social words for me on departure every time.

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