Hospitality Experience

Opinion of Value Reports (4 Hotels) for Int. Portfolio Valuation

Our office was retained by an international investment firm to prepare Opinion of Value reports for four hotels within their global portfolio. The primary objective was to determine the current market value of each property to support strategic decision-making, potential transactions, and financial reporting requirements.

Project Scope

We commenced by collecting extensive data on each hotel, including historical financial performance, property details, and market conditions. Site visits were conducted to assess the physical condition of the properties, compliance with regulatory standards, and competitive positioning.

Our team utilized multiple valuation methodologies to ensure robust and reliable estimates. The Income Approach involved Discounted Cash Flow (DCF) analysis, projecting future cash flows based on realistic assumptions about occupancy rates, ADR, RevPAR, and operating expenses. The Sales Comparison Approach analyzed recent transactions of comparable properties in similar markets to derive market-based valuations.

We performed market analyses for each hotel’s location, examining factors such as economic conditions, tourism trends, supply and demand dynamics, and competitive landscapes. This contextual understanding was crucial in assessing each property’s performance potential and risk profile.

Sensitivity analyses were conducted to evaluate how changes in key assumptions, such as market growth rates or operational efficiencies, could impact valuations. We also identified and assessed any encumbrances or liabilities that could affect the value of the properties.

The Opinion of Value reports provided detailed valuations for each hotel, complete with supporting data, assumptions, and rationale. Our analyses offered the client clear and substantiated valuations, enabling informed decision-making regarding asset management, potential sales, or refinancing options.

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