Hospitality Experience
Due Diligence for Bansko Wellness Hotel
Client has requested Horwath HTL Hungary for the operations review of one of its 4-star hotels located in the ski resort of Bansko. The client required an analysis of the Hotel’s performance, including achieved ADR and Occupancy, operational costs and staff expenditure, benchmarked against the direct competition and the local market, along with recommendations on how to improve its overall performance.
Project Scope
Our firm was engaged to conduct due diligence for a wellness hotel in Bansko, Bulgaria, as part of a potential acquisition. The client sought a comprehensive evaluation of the property’s financial performance, market positioning, and operational potential to inform their investment decision and mitigate risks.
The due diligence process began with a thorough review of the hotel’s financial records, including historical revenue, operating expenses, and profitability metrics. We assessed the accuracy of reported figures and identified trends that could influence future performance, such as seasonality in guest demand and the impact of local economic conditions. Additionally, we evaluated the hotel’s revenue streams, including room sales, spa services, and food and beverage operations, to identify potential areas for growth or optimisation.
Next, we analysed the property’s market positioning, benchmarking it against comparable wellness-focused hotels in the region. This involved reviewing key demand drivers, such as the appeal of wellness tourism in Bansko, and the competitive landscape. We also examined guest segmentation, pricing strategies, and online reputation to determine the property’s relative strength in attracting its target audience.
Operational aspects were also reviewed, including the efficiency of the hotel’s management team, the condition of facilities, and the alignment of services with wellness tourism trends. Special attention was paid to the potential for upgrades or repositioning to enhance the hotel’s market appeal and profitability.
Finally, we provided a detailed risk assessment, covering contractual obligations, regulatory compliance, and market volatility. Our final report included financial projections, operational recommendations, and strategic options for the client, ensuring they had a clear understanding of the asset’s potential and the steps required to maximise its value.
Our due diligence enabled the client to make a well-informed decision, equipped with a detailed understanding of the Bansko wellness hotel’s current state and future opportunities.
