
Hospitality Experience
Expert Opinion for Arena Hospitality Hotel Portfolio
Horwath HTL was appointed by Arena Hospitality Group, one of Croatia’s largest hotel portfolio owners with over 20 properties, to conduct an objective and detailed due diligence (ODD) and valuation of its assets during the preparation of its IPO.
Project scope
Horwath HTL was appointed by Arena Hospitality Group, one of Croatia’s largest hotel portfolio owners with over 20 properties, to conduct an objective and detailed due diligence (ODD) and valuation of its assets during the preparation of its IPO. This comprehensive assignment aimed to deliver a thorough analysis of the portfolio’s current status, operational efficiency, and market position, providing the foundation for informed decision-making during the IPO process.
The project began with a status quo analysis, which involved a deep dive into the existing portfolio to assess asset quality, operational performance, and alignment with market expectations. Each property was carefully reviewed to identify strengths, weaknesses, and areas for improvement, ensuring a clear understanding of the portfolio’s baseline.
A detailed market analysis was conducted to contextualise Arena’s properties within the broader Croatian hospitality sector. This involved benchmarking the portfolio against competitors, assessing regional tourism trends, and evaluating demand drivers, helping position Arena’s offerings within the market’s dynamics.
The commercial review included an examination of Arena’s business model, sales and marketing strategies, and overall performance metrics. The review also involved a detailed analysis of the Hotel Management Agreements (HMA), ensuring alignment with market practices and maximizing value for stakeholders.
The operational review assessed key performance indicators (KPIs), departmental profitability, revenue structures, and cost efficiencies. This step provided a granular understanding of operational strengths and areas where profitability could be enhanced.
Horwath HTL’s opinion on value was a critical outcome of the project. Leveraging market and operational insights, we delivered a robust valuation of the portfolio, reflecting both its current worth and future potential.
The engagement concluded with final recommendations for optimising performance and maximising asset value, equipping Arena Hospitality Group with actionable insights to support a successful IPO. This collaboration reaffirmed Horwath HTL’s expertise in providing strategic, data-driven support for complex hospitality projects.