Project Scope

Our office was engaged by the proprietors of Nikoi and Cempedak Private Isles to conduct a comprehensive Discounted Cash Flow (DCF) analysis and portfolio valuation. The primary objective was to assess the financial performance of the existing operations and determine the intrinsic value of these luxury island resorts to inform strategic decision-making regarding future investments or divestments.

The project commenced with an exhaustive review of historical financial data for both properties. We analyzed revenue streams, including accommodation, dining, and ancillary services, alongside operating expenses such as staffing, maintenance, and utilities. This evaluation provided insights into the profitability drivers and cost structures unique to each island.

Our team developed detailed financial models projecting future cash flows over a ten-year horizon. We incorporated market trends, occupancy rates, average daily rates, and potential growth in the luxury ecotourism sector. Sensitivity analyses were performed to assess how variations in key assumptions—such as changes in guest numbers or operating costs—could impact financial outcomes.

The DCF analysis involved calculating the Net Present Value (NPV) and Internal Rate of Return (IRR) for each property, using discount rates reflective of the inherent risks and capital costs associated with operating private island resorts in the region. We also considered macroeconomic factors, including exchange rates and inflation, to ensure robust financial projections.

In addition to individual valuations, we performed a portfolio analysis to evaluate the synergistic benefits of owning both islands. This included assessing opportunities for shared marketing initiatives, cost efficiencies through combined operations, and enhanced market positioning. The portfolio valuation provided a holistic view of the assets’ combined worth, considering potential diversification advantages and risk mitigation.

Our findings were compiled into a comprehensive report outlining the financial valuations, key assumptions, and strategic recommendations. We identified opportunities to enhance revenue, such as diversifying service offerings and leveraging sustainable tourism trends. Cost optimization strategies were also proposed, including energy efficiency measures and streamlined supply chain management.

We conducted a risk assessment highlighting factors such as environmental regulations, market competition, and geopolitical influences. Mitigation strategies were recommended to address these risks, ensuring the long-term sustainability of the investments.

The project culminated in presenting actionable insights to the client, enabling informed decisions regarding asset management. Our analysis equipped the proprietors with a clear understanding of the financial health and potential of Nikoi and Cempedak Private Isles, supporting their strategic planning and investment considerations.

Overall, the DCF and portfolio valuation provided a solid foundation for the client to maximize the value of their assets, align operations with market opportunities, and pursue growth initiatives that align with their business objectives.

Lokalizacja projektu

Bintan, Indonesia