Project scope

Horwath HTL was appointed to perform a detailed valuation of the proposed Aman Cavtat resort in Croatia, a luxury development set to elevate the region’s hospitality offerings. Situated near the historic town of Cavtat and close to Dubrovnik, the resort, with its 50 keys, is envisioned as a harmonious blend of modern luxury and Croatia’s rich cultural heritage. This valuation aimed to provide stakeholders with a clear understanding of the project’s financial viability and strategic value.

The process began with an in-depth market analysis to assess the luxury hospitality sector in Croatia and the Adriatic region. Tourism trends, including a significant 130% growth in overnight stays over the last decade, underscored the market’s robust potential. Competitive positioning and demand drivers were examined to contextualize the resort within the regional and global luxury tourism market.

A comprehensive financial evaluation was undertaken, incorporating projected revenue streams such as room rates, occupancy levels, and ancillary services. The potential cash flow generation was modeled to estimate the resort’s income potential. Comparisons were drawn to similar luxury developments in the region, providing valuable benchmarks for pricing and performance expectations. Additionally, development costs were scrutinized, with considerations for construction expenses, land value, and expected depreciation, ensuring a robust and multidimensional valuation.

The analysis also highlighted the strategic significance of the Aman brand entering the Croatian market. Similar to its transformative impact in Montenegro with Aman Sveti Stefan, the brand’s presence in Cavtat is anticipated to position Croatia as a luxury tourism destination on the global stage.

The final valuation report offered a detailed financial model with sensitivity analyses to account for market dynamics and operational risks. This comprehensive approach provided stakeholders with actionable insights, supporting informed decisions in the development of this prestigious project.

Project Location

Cavtat, Croatia