Commercial Due Diligence for Hotel Group Acquisition

Horwath HTL was engaged as an advisor for the acquisition of a group hotels in Northern Ireland. The Dublin office led the assignment, conducting a comprehensive feasibility study that encompassed a review of the portfolio’s performance, asset management potential, and value-add opportunities. The objective was to provide the client with an in-depth understanding of the portfolio’s current state and future potential.

The engagement began with a detailed analysis of the six hotels’ performance within their respective micro-markets. Key performance indicators such as occupancy, average daily rate (ADR), and revenue per available room (RevPAR) were evaluated and benchmarked against regional and competitive sets. This analysis provided a clear picture of the portfolio’s market positioning and operational efficiency.

An asset management review was undertaken to assess the condition of the properties, identify areas for operational improvement, and recommend strategies to optimise profitability. This included a thorough evaluation of cost structures, service delivery, and revenue management practices to uncover opportunities for enhanced performance.

The study also identified value-add opportunities for the portfolio, including potential refurbishments, brand repositioning, or operational adjustments to align with market trends and guest expectations. Financial modelling was conducted to estimate the impact of proposed changes on future performance and investment returns.

The final deliverable included strategic recommendations for the acquisition, focusing on maximising the portfolio’s value and aligning it with the client’s broader business objectives. By providing a detailed feasibility study and actionable insights, Horwath HTL supported the client in making an informed acquisition decision, ensuring long-term success and profitability for the hotel group.