Valuation of five hotels in the central districts of the Paris-Lyon-Marseille axis – France

Office: Horwath HTL France

Project Overview: An investment fund was looking to inject capital into a hotel company retaining a portfolio of five 3 to 4 star hotels, of which two in Paris, two in Marseille and one in Lyon. Horwath HTL France was commissioned to undertake a valuation, on behalf of the investment group, of the about 300-key portfolio.

Horwath HTL Solution: Horwath HTL undertook a valuation of each of the assets.
The market conditions in the different cities were examined and the facilities’ positioning and programming were arbitraged in order to give precise recommendations. Supply and demand data and pricing were projected and an operating cash flow analysis and a financial investment analysis were also provided.

The valuation was challenging because of the very recent repositioning of most of the assets deriving from massive capital injection. So the key to the valuation was the estimate of future operating performances. In addition, during the course of our mission, we were asked to comment on an additional opportunity located in the French Alps.

Implementation: The valuations of these hotels were completed end of 2014 and the investment group decided not to close the deal.

Contact for project: Philippe Doizelet