Hospitality Experience

Second Opinion on Luxury Operator Lease

The client required a second opinion on a luxury hotel development with 130-rooms in one of the most popular resort destinations in Austria


Project Scope

Horwath HTL was engaged to provide a second opinion on the lease terms and overall feasibility of a proposed luxury hotel development with 130 rooms in one of Austria’s most renowned resort destinations. The objective was to ensure that the lease agreement with a prospective operator aligned with market standards, optimised financial outcomes, and supported the project’s long-term success.

The engagement began with a thorough review of the lease structure, including fixed and variable components, revenue-sharing mechanisms, and the term’s duration. Horwath HTL benchmarked the proposed agreement against comparable deals in the luxury hospitality sector, ensuring that the financial terms reflected market expectations while protecting the client’s interests.

The operational feasibility of the hotel was critically assessed, focusing on key performance indicators such as average daily rates (ADR), occupancy projections, and revenue per available room (RevPAR). The analysis included an evaluation of the competitive landscape, considering existing luxury properties in the region and the destination’s seasonal demand patterns. This ensured the operator’s business model was viable within the local market context.

Additionally, the client’s projected returns under the lease agreement were analysed, incorporating sensitivity scenarios to account for potential market fluctuations. Recommendations were provided on how to adjust the lease terms, if necessary, to enhance profitability while maintaining a mutually beneficial partnership with the operator.

The final deliverable was a comprehensive report outlining the findings and offering actionable insights. This included recommendations on the lease terms, operational assumptions, and financial projections to ensure the agreement’s sustainability and alignment with the luxury market’s dynamics.

By delivering a robust and market-aligned analysis, Horwath HTL supported the client in securing an operator lease that optimised the hotel’s development potential, ensuring both immediate and long-term success in one of Austria’s premier resort destinations.

Ospitalità
Strategia e pianificazione
Attività