We prepared an independent review and assessment of the operational aspects of the hotel; together with a review and assessment of the prevailing hotel management agreement (HMA) with the hotel operator, and a review and assessment of the capital expenditure (CAPEX) status and potential requirements into the immediate future. The written report was intended for internal information as part of the acquisition review process.
More about our Transactional Advisory: https://horwathhtl.com.au/services/transactional-advisory/
The client requested an assessment of the operating financial Pro-forma for hotels under management in specific class sectors, with an emphasis on benchmarking to comparable national operators. Much of the focus was on Undistributed Operating Expenses. Moreover, the objective of the assignment was to assess systems charges and to understand how operators are using centralised services and clustering to improve operating efficiencies.
More about our Strategic Advice – Operation services: https://horwathhtl.com.au/services/strategic-advice-operation/
We were invited to complement the Client’s appointed project team, to support the development planning process and the operator’s technical services team. We performed an intermediary role between all project parties, aimed to underpin the veracity of the design development process.
More about our Technical Services: https://horwathhtl.com.au/services/technical-services/
The client required hospitality consulting services related to a proposed development to be located proximate to the Twelve Apostles in the Great Ocean Road region. The development is planned to include five distinct zones – natural hot springs, food and beverage, accommodation, wellness centre, entertainment zone and visitor centre. The client required independent research and trading projections for the resort accommodation components of the precinct.
More about our Hotel Planning & Development services: https://horwathhtl.com.au/services/hotel-planning-development/
The owner and operator of the largest portfolio of hotels in Papua New Guinea required an independent assessment of the merits to migrate from being a self-managed, local brand into a portfolio of hotels under a global flag, through a management agreement or under a franchise agreement.
We prepared an initial Opportunity Information Document, undertook an Operator/Franchisor contact and liaison process, prepared a Business Case summary document to present the client with the opportunity and associated analysis for further internal decision-making. We then moved to a commercial terms negotiations process with the intent to conclude with a Term Sheet ready to be formalised by the client’s legal advisor into a Hotel Management Agreement or Franchise Services Agreement.
More about our Strategic Advice – Operation services you can find on: https://horwathhtl.com.au/services/strategic-advice-operation/
Description of the Project
The proposed project includes two international luxury and upper upscale Hotels and their affiliated Serviced Apartments. The total room count is approximately 1,300 rooms.
Scope of Work
Horwath HTL was approached by the client to conduct thorough market research and prepare a 10-year cash flow projection.
Project Status
Reached a settlement
Overview:
As part of the acquisition due diligence support for IHG in acquiring the Six Senses Hotel Chain, we have not only assessed the market potential of the Six Senses Felicité Island Resort in the Seychelles, but also provided financial projections to establish its estimated future profit generating ability. During the process we have also looked at various scenarios as the resort had the potential to be extended by a number of residential villas. As a result of the global due diligence, IHG successfully acquired the Six Senses Hotel Chain in 2019.
Scope of Work:
Horwath HTL Global Network was commissioned to conduct the acquisition due diligence work required on behalf of IHG in their proposed acquisition of the Six Senses Hotel Chain. As part of this global engagement, Horwath HTL Hungary, was tasked to perform the due diligence of the Six Senses Felicité Island Resort, in the Seychelles.
Status: Project Completed in 2018
Overview: The owner is from a manufacturing and prefabricated construction background, and wishes to develop a hospitality business line focused on health and wellness, starting with a development in the Maldives on a 20-hectare private island. The owner engaged Horwath HTL Health & Wellness to conduct thorough market research and competitive benchmarking to evaluate the feasibility of developing a dedicated wellness retreat with a distinctive concept strategy, that would become the first fully programming wellness resort in the Maldives.
Solution: Given the seclusion and peacefulness of the island site, Horwath HTL Health & Wellness recommended developing a luxury wellness retreat focused on enhancing mindfulness by offering a holistic, alternative and result-driven approach to wellness rooted in principles of inner balance and harmony with oneself and the environment.
The proposed concept strategy consisted of a range of on-land and over-water accommodation units to target different types of guests, a selection of healthy food and beverage outlets supplied by the on-site organic garden, a wellness center offering mind, energy and sound therapies along with oriental healing, spa treatments and heat and water experiences, fitness, mind & body facilities, as well as a range of educational, cultural and conservation activities. The aim of this development strategy was to achieve a unique point of differentiation and attraction with a concept that is distinct from the local competition and entirely true to the location.
Status: The project is currently in the planning stage of the development, and is anticipated to be open and operational by 2023.
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Overview:
Located to the west of Bengaluru, India, the site is perched atop a mountain offering magnificent views of the surrounding coffee plantations and rainforest. The client intends to develop a luxurious boutique wellness retreat that consists of state-of-the-art accommodation and residences. Horwath HTL Health & Wellness was appointed to explore the opportunity to develop a wellness retreat with branded real estate including various health and wellness components. Thereafter, Horwath HTL Health & Wellness pursued their support in order to search and evaluate potential wellness operators to manage both the wellness retreat and branded residences.
Solution:
Through its fast-paced tech industry, Bengaluru has become known to be the “Silicon Valley of the East” where many stressed entrepreneurs work long hours to run their companies, which ultimately leads to burn-outs. Based on this information, Horwath HTL Health & Wellness recommended to develop an ultra-luxurious wellness retreat with design-led accommodation targeting stressed-out entrepreneurs and business people. The service platform will consist of self-guided heat and water experiences, specific programing aimed at improving one’s mental health whilst merging the best of Eastern and Western healing modalities, and a selection of outdoor sports. The team then proceeded to prepare an Information Memorandum and select internationally-renowned operators recognized for their exceptional services and properties.
Status:
The project is currently in the planning stage and is anticipated to be operational by 2023/2024.
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Overview:
The client – one of the largest mixed-use hospitality group – was looking to acquire an established lifestyle resort and spa brand and engaged Horwath HTL Health & Wellness to perform a due diligence study and analyze the commercial value of the brand’s spa portfolio. As part of the assignment, Horwath HTL Health & Wellness was appointed to evaluate corporate branding and positioning, analyze the status quo of operating properties, assess the potential of pipeline projects, and review historical and forecasted financial performance of the property portfolio.
Solution:
Horwath HTL Health & Wellness carried out a corporate brand analysis, reviewing the overall size of the business, competitive landscape, pipeline, and outlook to ensure brand alignment with its vision and market perception. As part of the property-level analysis, Horwath HTL Health & Wellness reviewed each operating facility and pipeline project in terms of their location, positioning, facilities, guest offering, key operating and profitability metrics, and commercial terms of management agreements, outlining possible challenges and growth potential. Additionally, Horwath HTL Health & Wellness made strategic recommendations on corporate restructuring of the brand’s sister company, taking into account its business model, key services, organizational structure, and profitability.
Status:
The due diligence study was completed in 2018 and the acquisition was executed in early 2019.
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Over the last 25 years, Horwath HTL has played an integral part in an era of an incredible hotel development in China.
The success of a hotel project is a result of many factors, but one of the most important is the production of a feasibilty study. A financial and market feasibilty study will show the hotel developer and the financial backing, what chances of success the hotel will have.
Here is a list of some of the Feasibilty Studies we have carried out in Shanghai.
- Disney China Resort
- Park Hyatt Shanghai
- Portman Ritz Carlton Shanghai
- Hotel Nikko Shanghai
- Hyatt on the Bund Shanghai
Over the last 25 years, Horwath HTL has played an integral part in an era of an incredible hotel development in China.
The success of a hotel project is a result of many factors, but one of the most important is the production of a feasibilty study. A financial and market feasibilty study will show the hotel developer and the financial backing, what chances of success the hotel will have.
Here is a list of some of the Feasibilty Studies we have carried out in Beijing.
- The St. Regis Beijing
- JW Marriott Beijing Central Place
Scope of Work: The Shanghai office prepared written market research report and detailed SWOT analysis for the Client, including artist renditions of sustainable construction standards, development zoning scheme, recommended transportation infrastructure, and phasing strategy. In addition, comparable destination case studies both inside China and internationally were identified for their best development practices.
Description of Project: Develop an executable 10-year tourism development plan for a 3,000km2 area including the Changbai Mountain UNESCO Biosphere Reserve in China’s Jilin province including the development of diverse outdoor and indoor recreational activities, multiple resort hotels, and the effective integration of future transportation infrastructure with access to tourist attractions. Identify land parcels available for adaptive reuse that could be used to attract investors to develop resorts and other tourism facilities.
Project Status: Resort officially opened in 2012.
Scope of Work
Shanghai Disneyland Park is a theme park located in Pudong, Shanghai, that is part of the Shanghai Disney Resort. The park is operated by Walt Disney Parks and Resorts and Shanghai Shendi Group, through a joint venture between The Walt Disney Company and Shendi. Construction began on April 8, 2011. The park opened on June 16, 2016. Horwath HTL were commissioned to provide market and financial projections for the two hotels within the upcoming Disneyland Resort Area.
Description of Project
The market and financial projections forecasted the future room night and F&B demand for the theme park guests as well as outside guests. In addition to supply and room rate projections, Horwath HTL projected cashflows and other financial indiactors for the park.
Project Status
Opened 2016