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A hotel atrium lobby planted with mature trees beneath a glazed roof
Canada · Hotel development & management

We build hotels that hold their numbers.

HMG Hotels is the Canadian office of HORECA Management Group. We take a hotel from the first feasibility question to the day it is running profitably — feasibility, concept, design brief, construction oversight, pre-opening and operations, under a single contract and one line of accountability.

22Hotels delivered
concept to keys
1,150+Keys opened
and operating
$89.5MInvestment raised
for our clients
2014Founded ·
Canada since 2025
4–6 wksFeasibility study turnaround
1 dayWe reply to every enquiry
MonthlyOwner reporting a lender can read
10 provincesWhere we take on work
The problem we are usually called about

A hotel loses its first money on the wrong concept, not on the wrong contractor.

The wrong segment for the catchment. Rooms twenty per cent larger than the rate will ever justify. A kitchen sited against its own delivery route. A porte-cochère that cannot take a coach. These are decided before a single permit is pulled, and the building then carries them for thirty years.

Our work starts where those decisions are still cheap to change. The key count, the food and beverage programme and the gross floor area come out of a financial model that has been tested against real market data — and only then does anyone draw anything.

Numbers first, drawing second. If the numbers do not work, a handsome elevation will not rescue them.
Architectural model and drawings during hotel concept work
The model comes after the numbers, not before them.
The seventy-two per cent

Most hotels here do not fly a flag. Almost nobody is building a standard for them.

Seventy-two per cent of Canadian hotels are independent.1 They have no brand manual, no franchisor, and no reason for a guest to choose them over the identical building across the road — so they compete on price, which is the only lever left when everything else is the same.

We come from somewhere that solved this a long time ago. Georgia has been making wine for eight thousand years, its cuisine holds a Bib Gourmand in Toronto, and its idea of receiving a guest predates the hotel industry entirely. That is not decoration on a project. It is an operating standard — a wine list nobody nearby can copy, a kitchen with a reason to exist, and a dining room that earns instead of being carried.

Where our standard comes from

Brand standards are built around the operating process. This one is built around the guest.

1 By property count. Branded hotels still hold 55% of Canadian rooms. Horwath HTL, Canada Hotels & Chains Report 2026.

Process

From idea to a running hotel — six stages

Select a stage to see what you receive, what we need from you, and where projects most often lose time.

Stage 01 · 4–6 weeks

First establish whether it is worth building. Then draw it.

Catchment, demand generators, competitive set and a realistic rate and occupancy forecast, benchmarked against STR data for the market. This is the stage at which the original idea most often turns out to need changing — and it is far cheaper here than at working drawings.

You receive

  • Market and demand study
  • Competitive set analysis
  • ADR and occupancy forecast
  • Development budget and financial model

We need from you

  • Site or building particulars, survey, zoning
  • Your capital frame
  • Target return and hold period
Stage 02 · 6–10 weeks

Positioning, brand, and the room mix the model actually supports.

Branded against independent, a franchise shortlist and the terms behind each one. The brand decision drives the construction budget through brand standards, so it belongs here — before design, not after.

You receive

  • Concept book and positioning
  • Brand comparison matrix and term sheets
  • Operator or franchisor RFP pack
  • Revised room and area programme

We need from you

  • Hold-period intention
  • Brand preferences, if any
  • Capital cost ceiling
Stage 03 · 8–18 months

A drawing that already accounts for how the hotel will run.

We write the operating brief your architect designs to, review every set against it, and coordinate the approvals path — rezoning, site plan approval, building permit, accessibility and building code compliance. On most projects this stage, not construction, sets the opening date.

You receive

  • Operating and area brief for the design team
  • Design review against operations at each set
  • Value engineering that does not cost you rate
  • Tender documentation and bid analysis

We need from you

  • Architect of record and consultant team
  • Stage sign-offs
  • Funding confirmation
Stage 04 · 14–24 months

Budget and schedule are held here — or lost here.

Owner-side construction oversight next to your general contractor: change order review, cash flow against the draw schedule, FF&E and OS&E procurement and a monthly owner report that says plainly where the project stands and which risks have surfaced.

You receive

  • Monthly progress and risk report
  • Budget and change-order tracking
  • FF&E and OS&E procurement
  • Quality and brand-standard control

We need from you

  • Draw schedule and lender requirements
  • Change-order approvals
Stage 05 · 16 weeks

On opening day the hotel should already be selling.

Standards, recruitment and training, property management system, channel manager and rate structure. Bookings have to open months before the doors do, or the first season is lost and never recovered.

You receive

  • Standard operating procedures
  • Recruited and trained team
  • PMS, channel and payment integration
  • Opening-year budget and sales plan

We need from you

  • Pre-opening budget
  • Licensing — liquor, food premises, business
Stage 06 · Ongoing

From here it comes down to one number: RevPAR.

Revenue management, sales and marketing, food and beverage and transparent owner reporting. We run the hotel as though it were ours, because our incentive fee is tied to how it performs.

You receive

  • Monthly profit and loss, in the standard hotel format
  • Revenue and channel management
  • Sales and marketing
  • Operational and financial audits

We need from you

  • Annual budget approval
  • Capital reserve

Durations are indicative. The approvals path is the largest single variable and differs by municipality. Read the full process

Track record

Twelve years of hotels, one project at a time

Twenty-two properties taken from concept to operating asset by HORECA Management Group — city hotels, resorts, ski and spa properties, aparthotels.

Sevsamora Resort & SpaSevsamora Resort & SpaSaguramo · Resort & spaLopota Lake Resort & SpaLopota Lake Resort & SpaKakheti · Lake resort & spaWhite Hill HotelWhite Hill HotelTbilisi · City hotelAbastumani Royal ResidenceAbastumani Royal ResidenceAbastumani · Heritage & wellnessBristol BakurianiBristol BakurianiBakuriani · Mountain resortColosseum Marina HotelColosseum Marina HotelBatumi · Waterfront hotelAkhasheni Wine Resort & SpaAkhasheni Wine Resort & SpaKakheti · Wine resort & spaPratap Signature Resort & SpaPratap Signature Resort & SpaAnaklia · Seaside resortChateau KhashmiChateau KhashmiKhashmi · Château & wineryHotel Borjomi Palace & SpaHotel Borjomi Palace & SpaBorjomi · Spa hotelMarco Polo GudauriMarco Polo GudauriGudauri · Ski resortHotel Snow PlazaHotel Snow PlazaBakuriani · Ski resortGolden Palace Batumi & CasinoGolden Palace Batumi & CasinoBatumi · Casino hotelCasino EclipseCasino EclipseBatumi · Casino hotelMtserlebi ResortMtserlebi ResortQvishkheti · Countryside resortAdamo HotelAdamo HotelTbilisi · City hotelHotel Gallery ArtHotel Gallery ArtTbilisi · Boutique hotelHotel ZemeliHotel ZemeliTbilisi · Boutique hotelHotel Atlas AbashidzeHotel Atlas AbashidzeTbilisi · City hotelHotel PostaHotel PostaMestia · Mountain hotelCorner InnCorner InnBatumi · AparthotelGonio InnGonio InnGonio · Seaside inn
Before the first drawing

What we are asked every week

Questions from owners and developers, answered the way we would answer them across a table.

We have a site in Ontario. Where do we start?

With a feasibility study. In four to six weeks you have the answer: how many keys, which segment, what rate and occupancy the market supports, what it costs to build and how long until the capital comes back. Take that to an architect — not the other way round. A design commissioned before the numbers is the single most common way to lose six figures on a hotel project.

How is a hotel management company paid?

Advisory and development work is a fixed fee, or a fee per stage. Operations are a base fee calculated on gross revenue plus an incentive fee on gross operating profit — so part of what we earn depends on how the hotel actually performs, not on how long we stay. Every fee is set out in writing before any work begins, and there are no success fees hidden in procurement.

Do you replace our architect or general contractor?

No, and we could not: every project requires a licensed architect of record and a general contractor, and those stay with your local firms. We sit on the owner's side of the table. We write the operating brief the design has to satisfy, review each drawing set against how the hotel will actually run, tender and verify quantities, and hold the budget and the schedule. Whoever builds the project cannot audit it.

Can an office building be converted into a hotel?

Sometimes — and the address has far less to do with it than the building does. Floor plate depth decides whether you get sellable rooms or a corridor of interior boxes. Window module decides the key width. Riser capacity, slab-to-slab height and exiting decide whether the conversion is affordable at all. A conversion test answers that in three to four weeks, before you spend anything on design.

How long does a hotel project take?

Two and a half to four years for a new build in a major market. The difference from most other countries is approvals: rezoning and site plan approval frequently take longer than construction itself, and they vary by municipality more than any other factor. A conversion of an existing building runs twelve to twenty months and is the reason so much new supply now comes from conversions rather than ground-up.

Do we need a brand, or can we open independent?

Both work. The answer is a number, not a preference. A flag buys distribution, a loyalty base and a lender who recognises the name — and costs roughly eight to twelve per cent of rooms revenue once royalty, marketing, loyalty and reservation fees are added, before the brand standards land in your construction budget. Independent keeps that margin and every decision, but only pays if the hotel gives a guest a reason to choose it: a defined concept, a written operating standard and someone accountable for holding it. We model both cases on your actual numbers before design starts, because the brand decision sets the specification — and once drawings exist it is expensive to reverse.

Your question is not here? Write to us

Next step

Have a site, a building, or a hotel that is underperforming?

Two sentences is enough to start: what the property is, where it is, and what stage it is at. We will tell you whether we can help, what we would need, and the likely timeline and cost. The first conversation is free.

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