Project Scope

Horwath HTL was engaged by Bain Capital to conduct comprehensive due diligence on its portfolio company, Oedo Onsen Monogatari Hotels & Resorts, as part of a strategic initiative to evaluate the company’s operational and financial performance. This engagement aimed to provide Bain Capital with a clear and actionable understanding of the company’s value, opportunities, and potential risks in preparation for a sale transaction.

The due diligence process included an in-depth analysis of Oedo Onsen Monogatari’s extensive portfolio of properties, which comprises hot spring inns and resorts across Japan. Horwath HTL assessed key operational metrics such as occupancy rates, average daily rates, revenue streams, and overall profitability. Special attention was given to identifying trends in guest preferences and market conditions, particularly in light of disruptions caused by the COVID-19 pandemic.

Additionally, Horwath HTL evaluated the physical condition of the company’s assets, ensuring compliance with regulatory standards and identifying areas requiring investment or improvement. The management structure and operational practices were reviewed to ensure alignment with industry benchmarks and best practices.

The analysis also included market positioning and competitive benchmarking, providing insights into Oedo Onsen Monogatari’s standing within the Japanese hospitality and wellness tourism sector. This holistic approach allowed Bain Capital to assess the company’s strengths, weaknesses, and potential growth areas.

The due diligence report prepared by Horwath HTL offered Bain Capital a comprehensive overview of Oedo Onsen Monogatari’s financial and operational health. This enabled informed decision-making during the sale process and contributed to a successful transaction, reflecting Horwath HTL’s expertise in navigating complex evaluations in the hospitality industry.

Project Location

Multiple, Japan