Project scope

Horwath HTL was appointed to preform valuation of portfolio of over 10 assets in Croatia. Valuation was done according to the International Valuation Standards (IVS) and was used as a basis for making strategic decision on acquisition.

This valuation aimed to determine the company’s market value by analyzing its operational performance, financial health, and strategic positioning within the hospitality industry.

The process began with an in-depth assessment of the company’s diverse assets, including hotels, resorts, and ancillary facilities. We evaluated key performance indicators such as occupancy rates, Average Daily Rate (ADR), and Revenue per Available Room (RevPAR) to gauge operational efficiency and market competitiveness. This analysis was contextualized within the broader Croatian tourism sector, which has seen significant growth in recent years.

Financial analysis involved reviewing income statements, balance sheets, and cash flow statements to assess profitability, liquidity, and capital structure. We employed valuation methodologies including the Income Approach, Market Comparison Approach, and Cost Approach to ensure a robust and accurate valuation. The Income Approach focused on the company’s ability to generate future cash flows, while the Market Comparison Approach benchmarked it against similar entities in the region. The Cost Approach considered the replacement value of the company’s assets, adjusted for depreciation and obsolescence.

Our team also examined the company’s strategic initiatives, including expansion plans, brand development, and market diversification efforts. This strategic review provided insights into potential growth trajectories and risk factors, which were integral to the valuation process.

The outcome was a detailed valuation report that offered a clear perspective on the company’s market value, reflecting its operational strengths, financial health, and strategic potential. This valuation serves as a critical tool for stakeholders, informing investment decisions, strategic planning, and financial reporting. Through this engagement, Horwath HTL reinforced its expertise in delivering comprehensive valuation services tailored to the unique dynamics of the hospitality industry.

Project Location

Croatia