Hospitality Experience
Zeina Hotel Portfolio Valuation
Horwath HTL Hungary was commissioned to value the 3-hotel portfolio of Zeina Hotels assessing the assets market value based on replacement cost, sales comparison and discounted cash flow approaches. We have also provided the bank with a mortgage value for each of the hotels. The valuation was carried out based on the RICS standards.
Project Scope
Our firm was engaged to conduct a comprehensive valuation of the Zeina Hotel portfolio, comprising three prominent hotels located in Budapest, Hungary. The project’s primary objective was to determine accurate market valuations for the assets and provide mortgage valuations to support refinancing initiatives. The valuation adhered to internationally recognised standards, ensuring accuracy, consistency, and reliability.
The process began with detailed on-site inspections of each property, where we assessed their physical condition, operational performance, and unique market positioning. Our team worked closely with hotel management to review financial data, including revenue streams, occupancy rates, and expense structures, to establish a clear picture of the assets’ operational health.
The valuation methodology employed three approaches: the income capitalisation approach, the sales comparison method, and the replacement cost analysis. The income capitalisation approach involved a detailed discounted cash flow (DCF) analysis, projecting future income streams and applying a market-appropriate discount rate to determine present value. The sales comparison method benchmarked the hotels against recent transactions of comparable properties within the Budapest market, while the replacement cost analysis estimated the cost to reconstruct the hotels, accounting for depreciation and obsolescence.
Mortgage valuations were tailored to meet the specific requirements of the lending institution, considering risk profiles and loan-to-value criteria. By aligning our valuation approach with the bank’s lending framework, we ensured the results supported the client’s refinancing objectives.
The final valuation reports provided the client and the financing institution with a comprehensive understanding of the portfolio’s market value. Our work offered actionable insights, facilitating informed decisions on refinancing and strategic asset management. The project underscored our expertise in delivering precise and reliable valuation services for complex hotel portfolios.
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Project Location
Budapest, Hungary
