3-star hotel in Suresnes, Paris Region

Office: Horwath HTL France

Category: Operational Advisory and Valuation

Project Overview: A private investor required the valuation of their 3* branded hotel in the context of the termination of a management contract. Horwath HTL France was commissioned to undertake the valuation of this 62 key hotel in Suresnes, located in the Paris region. The assignment involved several challenging aspects to the scale of the development, which included an operational advisory outlook and the evaluation of the different financial impacts of the choices given to the client.

Horwath HTL Solution: Horwath HTL undertook an asset valuation of the project that included a valuation of the existing hotel based on historical performances.

Horwath HTL carried out a site analysis, examined the market conditions in depth and used a competitive set analysis of remarkable and similar offerings in the Paris region. Before proceeding to the evaluation, a critical analysis of the proposed positioning and capacity were produced and the supply and demand data as well as the pricing for the entity were projected. An operating cash flow analysis and a financial investment analysis were also provided as well as a sensitivity analysis based on alternative branding and star-rating options.

Implementation: The valuation of this hotel was completed in 2014 and the project was closed as the hotel has been purchased by a newly created hotel fund. The hotel still trades under the same 3-star brand today, which is what we demonstrated as the most relevant option.

Contact for project: Philippe Doizelet