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Horwath HTL Hotel Valuation Services
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Expert and professional, we have carried out over 2000 hotel valuations worldwide.

Hotel Valuations Team

 

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Hotel Valuation

Expert and professional reports

From single asset to portfolio’s spread across several countries, Horwath HTL’s Hotel Valuation experts will provide an independent, fair market valuation. We have experts with RICS and MAI accreditation who have been working in markets for many years and have a huge database of knowledge to draw on.

Hospitality assets, such as hotels and resorts, are complex real estate types, with significant land use value depending on their operational performance. Their performance is susceptible to greater market fluctuations, location issues, management sophistication and high capital investment than other real estate such as office or retail. Because of this, the valuation of hospitality assets requires a special market understanding and product expertise. Today, Horwath HTL is the leading industry expert retained by major hotel owners, lenders and operators to optimize their investment returns.

We employ a sophisticated Discounted Cash Flow (DCF) valuation approach recognized as the standard by investors in the hospitality industry. In our experience, sophisticated investors use replacement cost and sales comparisons only as secondary references. The DCF valuation process involves thorough review of the market, quantification of current and future market demand and most importantly, projection of a property’s potential future operating and financial performance based on assessment of its competitive attributes and characteristics. Discount rates based on prevailing investment trends and the weighted average costs of debt and equity are then applied to the projected net cash flows and aggregated to derive the property’s present value. Often, we also identify the potential upside opportunities associated with strategic repositioning through rebranding and/or capital improvements to derive a value reflecting an asset’s optimal performance.

Horwath HTL asset valuations are regarded as independent, expert opinions and a pre-requisite for:

Buyers, Investors and Fund Groups – for acquisition or disposal of single properties or portfolios

Owners and Developers – for arrangement of deal structuring, financing or disposal of assets

Banks and Financing Institutions – for pre-mortgage review or work-out and insolvency situations


SUITABLE PROJECT TYPES
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  1. Land Acquisition (using residual land value analysis)
  2. Asset Transaction
  3. Equity / Debt Participation
  4. Pre-Lending or Refinancing Review
  5. Due diligence for acquisitions or disposals
  6. Stock exchange listing
  7. Basis for joint venture or partnership structuring
  8. Asset revaluation for balance sheet purposes

Our valuation services include:

  • Valuations of hotel management and franchise companies
  • Real estate tax assessment appeals and expert court testimony
  • Expert valuation testimony for foreclosure and bankruptcy proceedings
  • Accounts purposes – short form annual valuations undertaken for a variety of investor’s operators and owners.
  • Feasibility – studies undertaken worldwide on hotel viability purposes on new developments conversions and existing operations
  • Expert Witness /Rent Reviews/Lease Renewals – acting on behalf of Landlords and Tenants as well as investors and insurers

Success Stories

  • Valuations SS
    Valuation

    Valuation – Former Yugoslavia

    Overview: Horwath HTL was instructed to prepare a Market Valuation for lending purposes of a hotel portfolio with a combined 500+ bedrooms.

    Solution: The portfolio comprised three operational hotels with a mix of historic period and more modern buildings, which between them held a dominant position in the local market for quality hotel rooms. At the time of the valuation the portfolio was owner operated.

    Impementation: Our valuation was completed on time.

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    Valuations SS
    Valuation

    Inland American, Hotel Portfolio Valuation

    Scope of Work: Inland American requested our services in evaluating several large portfolios of hotels for their REIT.
    Description of Project: We evaluated over 200 hotels in 5 portfolios over a period of two months, generating a high level analysis of the performance and prospects of each portfolio and recommending specific inclusions or exclusions of hotels. The total value of the portfolios was over US $2billion.
    Project Status: Completed in 2007

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    Valuations SS
    Valuation

    Horwath HTL Representative Appraisal Assignments

    Scope of work: Horwath HTL USA has worked on many valuation and appraisal assignments.

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  • Valuations SS
    Valuation

    Hong Kong, China Industry Consultant, IPO of New Century Hotel Properties

    Scope of Work:

    Provide historical performance of markets where listed hotels are located: Ningbo, Hangzhou, Qiandao Lake and Changchun. Projection of future market performance in terms of ADR and OCC.


    Description of Project:

    IPO of 5 properties belonging to New Century Hotel as a REIT on the Hong Kong Stock Exchange

    Project Status:
    Ongoing

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    Valuations SS
    Valuation

    Colombo, Sri Lanka

    Scope of Work: Investment Due Diligence

    Description of Project: Provided market outlook and projections for a proposed Hyatt Regency Colombo as part of lender due diligence for OPIC (US Government Investment fund). This involved performance estimates, cash flow projections and risk assessment.

    Project Status: Completed

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    Valuations SS
    Valuation

    ANA Harbour Grand Hotel Sydney

    Scope of Work: Vendor Due Diligence

    Description of Project:

    Vendor due dililgence Transaction management services to closure and beyond Responsible for entire sale process- locating potential buyers, coordinating sales activities, preparation of information Memorandum Strategic advice to Vendor Review of physical product and coordination of consulting engineers, etc

    Project status: Completed

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  • Valuations SS
    Valuation

    InterContinental Resorts Tahiti, Moorea & Bora Bora

    Scope of Work: Vendor Due Diligence

    Description of Project:

    Facilitating a US$280M capital raising Strategic advice to Vendor Vendor due diligence Review of physical product and coordinating of consulting engineers, etc.

    Project status: Completed

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    Valuations SS
    Valuation

    Park Hyatt Sydney

    Scope of Work: Vendor Due Diligence

    Description of Project:

    Vendor due diligence Transaction management services to closure and beyond Strategic advice to Vendor Review of physical product and coordination of consulting engineers, etc.

    Project Status: Completed

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    Valuations SS
    Valuation

    Hotel Nikko Hanoi, Vietnam

    Scope of Work: Operations Advisory

    Description of project: Identified areas operating well and those requiring improvement through the examination of the hotels facilities, historical performance, market mix, F&B, organization structure, sales & marketing and departmental procedures on behalf of Nikko Hotels.

    Project Status: Completed

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