Hospitality Experience
Operational Due Diligence for Fund Manager
We were engaged to conduct an independent review and assessment of the operational aspects of a hotel, supporting a fund in evaluating its potential acquisition.
Project Scope
We were engaged to conduct an independent review and assessment of the operational aspects of a hotel, supporting a fund in evaluating its potential acquisition. The project included a comprehensive analysis of the hotel’s market and financial performance, product offerings, facilities, human resources, existing contracts, and operational structure.
Our work involved assessing the implications of the existing hotel management on the fund’s prospective ownership. This included analysing the operational agreements in place, evaluating their terms and performance, and identifying any constraints or opportunities they presented for future ownership.
We also reviewed and assessed the immediate requirement for operational capital expenditure (CAPEX), providing a clear understanding of necessary investments to maintain and enhance the asset’s performance. Beyond this, we advised on potential value-enhancing improvements, including operational adjustments and strategic modifications to the existing capital plan and preliminary development scope.
Through our analysis, we identified a range of value-enhancing opportunities. These included operational efficiencies, revised assumptions for capital requirements, and further development enhancements. These findings offered actionable insights to improve the hotel’s performance and align it more closely with the fund’s objectives.
Following our recommendations, the fund proceeded with the acquisition of the hotel. In collaboration with the existing operator, a major improvement programme was implemented, focused on operational refinements and strategic investments to unlock the asset’s full potential.
