Overview: Horwath HTL was instructed to prepare on behalf of a bank a Market Valuation for lending purposes of a hotel portfolio with a combined 500+ bedrooms. The valuation was undertaken by the London office in cooperation with our offices in Austria and Croatia.
Solution: The portfolio comprised three operational hotels with a mix of historic period and more modern buildings, which between them held a dominant position in the local market for quality hotel rooms. At the time of the valuation the portfolio was owner operated. The valuation was more complex than usual due to the limited availability of historic financial data and the accounts not being fully compatible with international hotel accounting practices. In addition, there were a number of legacy issues in relation to the ownership of the assets, creating additional complications in the valuation proposal.
Implementation: Despite the unforeseen complications, our valuation was completed on time and we valued the total portfolio in excess of EUR 40 million.