Portfolio Valuation

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.

Strategic & Operational Consulting

Headquartered in Rovinj, Croatia –  Maistra PLC. was established in March 2005, having inherited 50 years of experience in the tourism business. The company presently has 10 high quality hotels, 8 tourist resorts and 6 camps situated at prestigious locations in Rovinj and Vrsar, two Istrian tourist centres of exceptional natural and cultural/historic values. The total portfolio capacity amounts to nearly 34,000 guests, resulting in the figures of approximately 5 % of the tourist results of Croatia, and slightly more than 15 % of the tourist results of Istria. Horwath HTL was engaged to help transform the company into a clear cohesive brand that could compete with similar products on an international basis.

Scope of Work
The goal was to increase company-wide ROI and achieve international competitiveness across all their brands. In order to facilitate the change required internally, we supported Maistra in their strategic development by working with the existing management team to create effective international benchmarks combined with a strategic business plan over a 4-year period.

Since 2011, there have been significant improvements in operating performances and quality standards. After the company stabilization, Horwath HTL has continued to provide strategic and operational support on an ongoing basis in order to support further growth of the company.