The Two Bunch Palms Resort
Office: Horwath HTL, Miami
Project Overview:A once famous retreat for Hollywood movie stars, The Two Bunch Palms Resort, located near Palm Springs, California, had suffered after years of neglect. A small group of Los Angeles investors purchased the property out of receivership and hired a destination spa CEO to rejuvenate the property. Known for its therapeutic mineral springs, the resort had retained a small group of loyal followers.
Horwath HTL Solution:With input from our valuation team and hotel architects WATG, a two-phase renovation was planned with Phase I putting the shine back on the existing facilities and Phase II expanding the room count and amenity base by approximately 50%. The market study was used to convince the investor group that Phase I renovations would result in improved Net Income. A year later, the renovations were in place and the client noted that we forecast the improvement in ADR almost to the dollar. Before implementing the second phase of renovation/expansion, the hotel was sold with a significant gain.