How much would you charge for this freelance UW project?

How much would you charge someone who asked you to do a full UW of a mid-level NYC prospective hotel development project strictly from the in-place operator's perspective (i.e., fewer moving pieces than with the acquisition, disposition, debt, equity, jv, etc. pieces)? Possibly ~20 hours of work.

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With all due respect, as a hotel guy, I am not sure why anyone would ask and pay you to do this. If this is not a normal investment case UW and more so operator point of view UW, then why would I not just lean in on the in place operator who lives this day to day and is going to be way more in tuned with actual staffing levels, expense control, and revenue management strategies and do this for free?

 
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I've done some freelance UW work and ~$100/hour is usually the sweet spot, anything much higher and they'll find somebody else for cheaper.  If you think they really want you and aren't considering hiring somebody else then you can ask for more.

Also, if you have a good idea what the total time commitment will be, charging a flat fee for the total project is usually preferable so you don't have to track your hours while you work.  You may end up shortchanging yourself a bit if say you think you'll work 20 hours and end up working 22, but I still think its better than having to log time.

 

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