
Hospitality Experience
Independent Valuation of 5-Star Hotel in Central London
Horwath HTL were commissioned to undertake an independent valuation of a 5-star hotel in Central London. The client required an accurate assessment of the property’s market value to support a strategic decision regarding a potential sale or refinancing.
Project Scope
We were commissioned to undertake an independent valuation of a 5-star hotel in Central London. The client required an accurate assessment of the property’s market value to support a strategic decision regarding a potential sale or refinancing. Given the prestigious location and luxury positioning of the hotel, the valuation required a meticulous approach to capture the property’s unique attributes and market standing.
Our process began with an extensive site inspection to assess the hotel’s condition, facilities, and overall appeal. This included evaluating the quality of the accommodations, food and beverage outlets, meeting spaces, and additional amenities, ensuring all factors contributing to the hotel’s value were accounted for.
We then conducted a comprehensive market analysis, focusing on London’s luxury hospitality sector. This involved benchmarking the property against comparable 5-star hotels in terms of location, room rates, occupancy levels, and revenue per available room (RevPAR). Additionally, we analysed broader market trends, including tourism flows, economic indicators, and the competitive landscape, to place the property’s performance within a wider context.
The valuation also incorporated a detailed financial review. Using historical and current operational data, we assessed revenue streams, cost structures, and profit margins. These figures were then projected under multiple scenarios to estimate future performance and highlight potential risks or opportunities. A discounted cash flow analysis and market comparison approach were employed to ensure the valuation was robust and aligned with industry standards.
The final report provided the client with a clear and transparent valuation, supported by data-driven insights and expert commentary. This enabled the client to confidently navigate their strategic options, armed with a comprehensive understanding of the property’s market value and potential.
Project Location
London, United Kingdom