Hospitality Experience
Market Value for Part-Developed Resort
Horwath HTL was engaged to assess the market value of a partially developed resort project, where completion had been jeopardised due to financial and operational challenges. The valuation was critical in providing stakeholders with a clear understanding of the project’s current worth and its potential if development were completed, supporting strategic decisions regarding its future.
Project Scope
We were engaged to perform a market valuation of a property to determine its current market value, supporting the client in making informed financial and strategic decisions. The objective was to provide a thorough and accurate assessment based on local market conditions, property-specific attributes, and future potential.
The valuation process began with a comprehensive analysis of the local market, including recent transaction data, trends in property values, and economic drivers influencing the sector. Key factors such as demand-supply dynamics, zoning regulations, and infrastructural developments in the area were also considered.
A detailed inspection of the property was conducted to assess its condition, size, and unique features. We reviewed its current use and potential for alternative uses, considering factors like location advantages, accessibility, and proximity to key amenities. For income-generating properties, the analysis included an evaluation of rental income, lease terms, and occupancy rates.
We employed multiple valuation methods to ensure accuracy and reliability. The comparative approach involved analysing sales of similar properties within the region to establish a baseline value. For income-generating properties, the income capitalisation approach was used to assess the present value of future cash flows. Additionally, the cost approach evaluated the replacement cost of the property, accounting for depreciation and market conditions.
The final valuation report provided a detailed breakdown of the methodologies used, the data analysed, and the conclusions drawn. Along with the property’s current market value, we offered insights into potential factors that could influence future valuation, such as market trends or development opportunities.
This market valuation provided the client with a robust foundation for making strategic decisions, whether for sale, acquisition, refinancing, or development. It underscored our expertise in delivering precise and contextually informed valuations tailored to the client’s needs.
Project Location
Arlberg, Austria
