Hospitality Experience
NYC Hotel Due Diligence
Horwath HTL Virginia was engaged by a global operator to conduct a comprehensive due diligence report on the hotel component of a mixed-use development. The assignment required an in-depth evaluation of the hotel’s market potential, financial feasibility, and strategic fit within the larger development.
Project Scope
This analysis was conducted in collaboration with the New York City office, leveraging their expertise in urban mixed-use projects to ensure a thorough and nuanced assessment.
The due diligence process began with a detailed market analysis, examining demand drivers, competitive positioning, and the broader economic and tourism trends influencing the development’s location. This included evaluating the hotel’s target market segments, such as business travellers, leisure guests, and potential group bookings, to project occupancy levels and revenue potential accurately.
Our team also reviewed the proposed design, layout, and operational plans for the hotel to ensure alignment with market needs and guest expectations. Key considerations included room mix, amenities, food and beverage offerings, and integration with the development’s retail, residential, and office components.
The financial analysis involved a comprehensive valuation of the hotel, incorporating projected cash flows, operating expenses, and capital requirements. We also assessed potential risks, including market saturation, operational challenges, and alignment with the overall mixed-use concept, to provide a balanced view of the hotel’s prospects.
Our final report provided actionable insights and strategic recommendations to the client, supporting their decision-making process and ensuring the hotel’s success as part of the broader development. This engagement demonstrated our ability to deliver meticulous due diligence and valuation services, tailored to the unique complexities of mixed-use projects, and reinforced our commitment to supporting clients in achieving their strategic goals.
