Valuation of a Luxury Resort and Holiday Village – Cape Verde

Office: Horwath HTL UK

Project Overview: A client was looking to finance a second, hotel component to an existing scheme in Cape Verde. Horwath HTL UK was commissioned to undertake a valuation, on behalf of the developer, of a 200-key luxury resort and 800-key holiday village in the Cape Verde archipelago. The assignment involved several challenging aspects to the scale of the development, which includes other interests that fell outside of the scope and were not to be included.

Horwath HTL Solution: Horwath HTL undertook a full RICS valuation of the project that included a new valuation of the existing holiday home component and a projected value of the proposed hotel.

The valuation was challenging because this particular Island in Cape Verde was completely underdeveloped from a tourism perspective, so the analysis had to be based on assumptions from the other islands and surrounding areas. The hotel valuation had many component elements from the Horwath HTL Financial and Feasibility template, combined with the RICS red book valuation techniques. We examined the market conditions, using competitive set analysis. We carried out a site analysis and looked at the facility recommendations. We projected supply and demand data for the and estimated pricing for the property. We also provide and investment analysis and operating cash flow analysis. This included looking at the viability of the Holiday home component.

Implementation: The Hotel valuation in Cape Verde with the holiday home component was completed and the project was successfully financed.

Contact for project: Erlend Heiberg