Hospitality Experience
Appraisal for Hôtel Birks
Horwath HTL was mandated by the purchaser of a historical office and retail location in downtown Montréal. At the time, plans called for the leasing of a portion of the space to the luxury jeweller, Henry Birks & Sons, and the conversion of the remainder of the building into a 5-star luxury boutique hotel.
Project Scope
Our firm was engaged to conduct a comprehensive appraisal of Hôtel Birks, a historic five-star boutique hotel located in downtown Montreal. The client required an accurate valuation to inform strategic decisions regarding potential refinancing and future investment opportunities.
The appraisal process began with an in-depth analysis of the hotel’s physical attributes, including its architectural significance and the quality of its facilities. Hôtel Birks, housed within a historic building, is known for its blend of classic and modern design elements, featuring 132 luxurious rooms and suites, as well as upscale dining and wellness offerings.
We then conducted a thorough market analysis, evaluating the hotel’s positioning within Montreal’s luxury accommodation sector. This included benchmarking against comparable properties, assessing key performance indicators such as occupancy rates, average daily rates, and revenue per available room. Broader market trends and economic conditions impacting the hospitality industry were also considered.
A detailed review of the hotel’s historical financial performance was a critical component of the appraisal. This encompassed an analysis of revenue streams, operating expenses, and profit margins, providing a clear picture of the property’s financial health. We also factored in ancillary services such as its spa and restaurant to offer a holistic valuation.
Using financial modelling, we developed projections for future performance based on various scenarios, accounting for factors like market demand, seasonal fluctuations, and planned capital improvements. This enabled us to estimate future cash flows and provide an accurate valuation of the property.
The final deliverable was a comprehensive appraisal report, tailored to meet the client’s specific requirements. It served as a key tool for strategic decision-making, providing actionable insights into the property’s current and future value.
