Hospitality Experience
Due Diligence Support for Gold Coast Serviced Apartments
Horwath HTL was retained to provide initial support during the due diligence period, including input on the configuration of the serviced apartment component (rooms, guest facilities, public areas, associated facilities as part of an initial concept description), and an initial cash flow projection of the potential trading of the serviced apartment component.
Project scope
Horwath HTL was engaged to provide critical support during the due diligence period for a proposed serviced apartment development on the Gold Coast. Our role focused on contributing to the initial concept configuration and delivering an initial cash flow projection for the serviced apartment component, ensuring the project’s viability and alignment with market expectations.
The engagement began with a detailed review of the proposed serviced apartment configuration. This included evaluating the layout of rooms, guest facilities, public areas, and associated amenities to ensure they met the demands of the target market while maximising operational efficiency. Recommendations were provided to refine the concept, aligning the design with industry benchmarks and the specific needs of both leisure and business travellers frequenting the Gold Coast.
We conducted a high-level market analysis to understand demand drivers and competitive dynamics, which informed the positioning and scope of the serviced apartments. This analysis included evaluating occupancy trends, pricing strategies, and guest preferences in the Gold Coast’s vibrant accommodation market.
An initial cash flow projection was prepared, providing insights into the potential trading performance of the serviced apartment component. The projection incorporated revenue estimates, operational cost assumptions, and anticipated profitability, offering a realistic outlook for financial sustainability. Sensitivity testing was applied to assess resilience under varying market conditions.
Our support provided the client with actionable insights and a robust foundation for decision-making during the due diligence phase. By aligning the concept configuration and financial projections with market realities, Horwath HTL ensured the project was well-positioned for successful development and long-term operational performance.
