Cape Town – 15-ON Orange Hotel

Office: Horwath HTL South Africa

Scope of work:
Limited Market Research
Operation Review
Valuation

Description of project:
Horwath HTL (South Africa) was commissioned to provide the financial institution:

  • a brief overview of current supply and demand in the relevant segment;
  • an overview of the terms contained in the management agreement entered into between the developer and hotel operator;
  • comment on the perceived risks to the financial institution;
  • review and comment of hotel performance viz a viz a comparable set of five-star establishments likely to be competing for demand;
  • a review of the operational budget presented by the developer in support of debt funding application and comment on the reasonableness of the assumptions contained therein;
  • a review of the operational budget prepared by the hotel operator and comment on the reasonableness thereof; and
  • prepare a valuation estimate with regard to the hotel component of the mixed-use development.