PHASE 1 – To conduct an Operator Selection process made up of the following steps:

1. PREPARE AN OPERATOR REQUEST FOR PROPOSAL (ORP)
   • This describes the hotel’s market environment, positioning, concept, financial projections and includes information on the existing property or proposed development.
2. MARKET THE OPPORTUNITY TO TARGET OPERATORS
   • Distribute the ORP to a group of hand-picked, pre-agreed operators with the brand, marketing and operating capability to compete successfully in the identified markets.
3. ARRANGE AND ATTEND SITE VISITS
   • Coordinate tours of the properties with the Client’s appointed representative(s). Coordinate tours of the properties with the Client’s appointed representative(s).
   • Preparation of a timetable noting all critical dates for submission of proposals, presentations and owner decision timeframes.
4. ANALYSE OPERATOR PROPOSALS AND PREPARE RECOMMENDATION REPORT
   • Evaluate operator proposals based on a number of criteria such as branding, suitability, reputation for delivery, cost implications and the major commercial terms.
   • Submit reports recommending the operator(s) that is most suited manage the hotel or resort.

PHASE 2 – To Review and Negotiate the terms of the operator’s appointment

• The Client receives a Letter of Intent and Heads of Terms from the preferred operator(s)
• Major heads of terms for the Management Agreement(s) (MA) and Technical Services Agreement(s) (TSA) are negotiated by BF&R Global and the Client’s appointed legal counsel until agreements are signed.