Project scope

Horwath HTL was engaged to conduct a cash flow and value assessment for the proposed Radisson RED Hotel in Bucharest, Romania. This assignment aimed to evaluate the project’s financial feasibility and potential market value, providing the client with actionable insights to support investment decisions and project development strategies.

The engagement began with an analysis of Bucharest’s hospitality market, focusing on the growing demand for lifestyle-focused hotel brands such as Radisson RED. Market trends, including the increasing appeal of contemporary, tech-forward accommodations among millennial and business travellers, were evaluated to position the proposed hotel competitively. A review of the local supply, occupancy trends, average daily rates (ADR), and revenue per available room (RevPAR) provided a benchmark for revenue projections.

The cash flow assessment involved detailed modelling of projected revenues, operating expenses, and profitability over the project’s lifecycle. Revenue forecasts were based on anticipated occupancy levels and ADRs, while cost estimations included pre-opening expenses, fixed and variable operational costs, and management fees. Sensitivity analyses were conducted to account for potential market fluctuations and risks, ensuring a comprehensive understanding of the project’s financial resilience.

For the value assessment, Horwath HTL utilised industry-standard valuation methods, including the income approach, to estimate the net present value (NPV) of future cash flows. The assessment also factored in the Radisson RED brand’s positioning and global recognition, which would enhance the property’s market appeal and contribute to its long-term value.

The final deliverable provided the client with a robust financial analysis and a clear value projection for the Radisson RED Hotel project. Horwath HTL’s expertise ensured the assessment was grounded in market realities, equipping the client with the information necessary to optimise the development and secure a successful market entry for the hotel in Bucharest.

Project Location

Bucharest, Romania