Valuation of Azalaï Group Hotel Portfolio- West African countries

Office: Horwath HTL France

Project Overview: The Azalaï Hotel Group, first West-African hotel group, required the valuation of its hotel portfolio. Horwath HTL France was commissioned to undertake a valuation of the 7 hotels totaling to 700 rooms and of the 5 project hotels. The hotel portfolio was composed of establishments in four different cities: Bamako (Mali), Ouagadougou (Burkina Faso), Bissau (Guinea-Bissau) and Cotonou (Benin).

Horwath HTL Solution: Horwath HTL undertook a full RICS valuation of the project that included a new valuation of the existing entities and projected values of the hotels in the development pipeline.

The valuation was challenging because it included existing hotels as well as hotel projects in different countries. Horwath HTL examined the market conditions in every city with an existing hotel and in the newly considered cities and use competitive set analyses to better understand the positioning of Azalaï as a brand. Recommendations on the programming of all the hotels were made and supply and demand data were projected for the hotel group. An investment analysis and operating cash flow analysis were also provided to the client. Particular emphasis was placed on the discount and capitalization rates for each hotel and project in order to achieve the most accurate view of the portfolio. Horwath HTL presented its findings to a panel of 30 representatives from banks and investment funds during an investor day in Abidjan (Ivory Coast).

Implementation: The hotel valuations of these hotels and projects were completed by the end of 2014 and the hotel group has leveraged funds to finance its development. A second assignment concerning the valuation of company shares was conducted by colleagues of Crowe Horwath France. In September 2015, Proparco, a body of the French Development Agency, decided to inject 16 million Euros in the Azalaï Hotel Group.

Contact for project: Philippe Doizelet