Hospitality Experience

Portfolio Valuation for Orbis Hotels/Accor Group

Horwath HTL were engaged to conduct a comprehensive portfolio valuation for Orbis Hotels, a prominent hospitality group in Central Europe, in the context of its acquisition by the Accor Group.

The objective of this project was to establish the market value of Orbis's extensive portfolio, which included a diverse range of properties across multiple countries, providing critical insights to inform strategic investment decisions.


Project Scope

We were engaged to conduct a comprehensive portfolio valuation for Orbis Hotels, a prominent hospitality group in Central Europe, in the context of its acquisition by the Accor Group. The objective of this project was to establish the market value of Orbis’s extensive portfolio, which included a diverse range of properties across multiple countries, providing critical insights to inform strategic investment decisions.

The process began with a detailed review of each property in the portfolio, encompassing financial statements, occupancy rates, revenue per available room (RevPAR), and operational costs. This was complemented by an in-depth analysis of the economic conditions and hospitality market trends in the countries where Orbis operated. Key factors such as tourism growth, competitive dynamics, and regional demand drivers were thoroughly examined to provide a comprehensive market context.

To ensure a robust and accurate valuation, multiple methodologies were employed, including the income capitalisation method, comparable sales analysis, and discounted cash flow (DCF) analysis. This multi-faceted approach allowed for a triangulated valuation outcome that captured the nuances of the portfolio’s performance and market position.

The valuation determined the gross asset value of Orbis’s portfolio at €1.18 billion as of December 31, 2018, excluding corporate overheads. This independent assessment played a critical role in Accor’s strategic decisions, including the acquisition of Orbis’s hotel services business for €286 million and the subsequent sale of its 85.8% stake in Orbis’s real estate assets to AccorInvest for €1.06 billion. These transactions aligned with Accor’s asset-light strategy, enabling the group to streamline operations and focus on its core hotel management and franchising competencies.

The comprehensive valuation provided the necessary financial insights to support these significant transactions, ensuring alignment with strategic objectives and reinforcing Accor’s position in the Central European hospitality market.

Hospitality
Transaction Advisory
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