Description: Horwath HTL was appointed by Orix Corporation to undertake a feasibility study for a capsule hotel in Ginza, Tokyo. This is the first capsule hotel development for the owner developer and the group was looking to expand.
Scope of work: Horwath HTL provided an understanding of the key parameters affecting the positioning of the future project and its anticipated financial performance. In preparing this study our team undertook analyses of the local capsule hotel and hostel market and the proposed location of the property, reviewed the site and existing buildings, as well as the conversion plans, and produced estimates of trading performance for the proposed hotel.
Status: Our market and feasibility study was used for financing purposes and the hotel subsequently opened in 2016.
Project region: Regions
ITDC & HCI – Divestment Valuation
Overview:
The India Tourism Development Corporation (ITDC) and Hotel Corporation of India Ltd (HCI) were looking to privatize of these assets and assigned Horwath HTL India as Valuation Advisors.
Solution:
Horwath HTL provided divestment related valuations for various hotels and resorts owned by the aforementioned government bodies. This was conducted particularly at a time when the aspect of divestment was new for India, and the government.
Status:
The valuation reports submitted by Horwath HTL India assisted in the privatisation of these assets.
Grand Hyatt – Feasibility Study
Overview:
Grand Hyatt Mumbai was the first large scale hospitality project in India comprising over 650 guest rooms including serviced apartments, when it was being planned and developed. Horwath HTL was commissioned by the owners (Saraf Group) to conduct the Feasibility study for this landmark project.
Solution:
The project was envisioned to comprise a mix of large function spaces, service apartments and retail areas. Horwath HTL India helped identify demand growth opportunities in a growing sub-market in Mumbai to best realize the potential of the project. We provided the Market and Financial Feasibility Report for the total project, including product recommendations; the project when executed was valued at Rs 6.0 billion.
Implementation / Status:
Horwath HTL’s Feasibility report was used as a basis for development of this project. Grand Hyatt Mumbai has been operational since 2004 as is the largest hotel in terms of inventory in India with 547 rooms and 111 serviced apartments. The hotel also possesses more than 30k sft of function spaces, and 80k sft retail areas.
Public Offer Documents – Industry Reports
Overview:
Horwath HTL India has been appointed as market specialists by three leading domestic hotel companies seeking Initial Public Offerings (IPO). We also acted as the market specialist for preparing the hotel section of the offer document for the first ever REIT in India.
Solution:
Horwath HTL drew upon its vast resources and experience to provide a holistic and detailed assessment on the Indian Hospitality Industry. The Industry report forms an integral part of the public offer document relating an IPO. This document is relied upon for accurately briefing investors about the company seeking the IPO and detailing its level of presence in the overall market. This document is verified by the Securities and Exchange Board of India (SEBI) prior to public release.
Implementation / Current Status:
Two of the three companies and the REIT are successfully listed on the stock exchange. Third company has received regulatory approvals for floating its IPO.
Leela Hotels – Brand Valuation
Overview:
Hotel Leelaventure Ltd. has been in hospitality business since the mid-1980s, owning and operating hotels under the ‘Leela’ brand. The owners were desirous of valuing the ‘Leela’ hotel brand. Horwath HTL was appointed to provide a valuation of the Leela brand, on behalf of the promoters of the luxury Leela Group of Hotels and Resorts.
Solution:
Horwath HTL India carried out a valuation of the ‘Leela’ brand by assessing the potential income that can be attributed to the brand through assessments of operational profitability and management contracts.
Implementation / Current Status:
The valuation report submitted by Horwath HTL India was used as a basis for determining the value of the brand.
Hotel Internal Audit and Operational Review – International Hotel Chain Portfolio
Overview:
Horwath HTL India has been appointed as internal auditors for a portfolio of several hotels across India, managed by a leading global hotel operator.
Solution:
Horwath HTL India has audited 18 hotels over 12 locations across India, comprising hotels in a wide range from luxury hotels to midscale hotels. We have been appointed based on our extensive understanding of domestic best practices to ensure operational efficiency and compliance, while ensuring hotels operate in line with the brand’s global standards.
Implementation / Current Status:
Internal Audit Reports submitted periodically help to identify operational and reputational risks, quantifying their impact and presenting recommendations to mitigate these risks.
Budgeting Assistance for Leading Global Hotel Operator
Overview:
Horwath HTL was commissioned by a leading global hotel management company to carry out budget analysis and forecasting for several hotels in its portfolio.
Solution:
Horwath HTL conducted in depth market analyzes for 19 hotels. The assessment focused on garnering a detailed understanding of factors impacting demand, supply, and the immediate and future impact of evolving market trends. Horwath HTL provided budget recommendations and also provided recommendations for possible operating approach towards optimizing revenue and earnings.
Implementation / Current Status:
Horwath HTL’s recommendations and financial projections served as an independent third party opinion for both the Operator and Owner and helped Operator fine tune its budgets.
Oberoi Hotels – Feasibility Study
Overview:
The Oberoi Group developed award-winning luxury resorts of the concepts and standards unseen before in India. Horwath HTL was given the privilege to conduct market and financial feasibility studies for uber-luxury resorts.
Solution:
Oberoi Group intended to develop iconic luxury resorts of type and scale unknown to the Indian landscape. Horwath HTL India carried out market and financial feasibility assessment for these luxury resorts in popular Indian tourist destinations – Agra, Jaipur and Udaipur. Horwath HTL India’s prior experience in these markets and within the luxury leisure segment were essential in best understanding the uniqueness and novelty of the proposed resorts while conducting the feasibility study.
Implementation / Status:
The Oberoi Udai Vilas, Raj Vilas, and Amar Vilas are successful iconic luxury properties in India today. Horwath HTL India’s Feasibility Reports and assessments were referred to by the owners and was an important basis for development of these properties.
Delhi Aerocity – Planning and Feasibility
Overview:
Delhi International Airport Limited (DIAL) – A consortium of Airports Authority of India, GMR Group, Fraport and Malaysia Airports, sought advice on developing a hospitality district at 56 acres of prime land at Delhi Aerocity.
Solution:
Horwath HTL India carried out a site assessment and recommended allocation into 13 plots for developing hotels of varied size and positioning, including a convention center, retail and commercial spaces. Horwath HTL carried out demand and facility assessments to identify opportunities and risks involved with the project and submitted recommendations with regard to the planned concept. The project was developed based on the findings and recommendations put forth.
Implementation / Current Status:
Delhi Aerocity presently has 11 hotels with 3,758 rooms; two other hotels with about 900 rooms and the convention center are under construction. The total investment into Delhi Aerocity is estimated at Rs. 30 billion.
Operator Search, Selection with Commercial Terms
A comprehensive search, selection and negotiation process and with recommendation for the most appropriate Hotel Management Company to manage the Hotel Project.
The scope of work included:
- Preparation of an Expression of Interest (EOI) document outlining objectives and scope of management required, response requirements in terms of operator information and expression of interest detail, timing requirements, and other search and selection process components.
- Operator Search contact and liaison process, culminating in expressions of interest from appropriately qualified hotel management companies.
- Operator Selection process, culminated in recommending a HMC.
- Commercial Terms negotiations process with conclusion of a Term Sheet ready to be formalised by the legal advisor into a Hotel Management Agreement.
Proposed Hotel for the Living City Project
We were requested to provide a report evaluating the success factors for hotel development in a significant urban redevelopment project in Tasmania’s North West region. The scope of work included: evaluation of the site and the surrounding market area of relevance to the potential project; assessment of the market opportunity relative to identifiable demand sources; assessment of the market opportunity relative to the potentially competitive supply; and concept development and trading projections for an upscale-quality hotel.
Asset Management Services 500-room Dual-branded Hotel
We provided ongoing asset management services to foster close working relationships between the Owner and Operator’s management teams, to maximize the performance of the asset in its initial year of operations, and to set up ongoing profitability of the subject property.
Services included, i.e. management contract compliance, operational assessment, monthly operating performance report, quarterly owner meetings, strategic asset management plan, review of annual marketing plans and budgets, financial performance analysis, competitive analysis, sales and marketing effectiveness, asset protection plans, capital expenditure planning and implementation, risk assessment/mitigation.
Gold Coast Serviced Apartments
We were retained to provide initial support during the due diligence period, including input on the configuration of the serviced apartment component (rooms, guest facilities, public areas, associated facilities as part of an initial concept description), and an initial cash flow projection of the potential trading of the serviced apartment component.
Performance Improvement Review & Plan Implementation
We were appointed by the hotel owner to review the operation of all hotels in the portfolio and prepare a Profit Improvement Plan. The scope of work included a review of documentation related to the performance, an in-depth on-property hotel review, identification of improvement opportunities, which concluded in a detailed Performance Improvement Plan for each property. Thereafter, we supported management in the plan’s implementation in the first year.
Proposed Theme Park Hotel
We prepared the independent assessment and verification of hotel plans and projections for a proposed theme park hotel. As part of the assessment, we worked on the potential volume of rooms that can be absorbed by the market, appropriate room mix configuration, optimal meeting, and conference facilities, and options for market positioning of any additional rooms. An independent and objective assessment of the performance and financial forecasts for the project undertaken was provided to the Client.
Century Park Development
Client: Private Investor
Year: March 2020-May 2020
Project Overview:
The main purpose of the market and financial feasibility study is to assess the market potential on the basis of market analysis and market outlook, and to evaluate the financial feasibility of the project on the basis of investment estimation and expected financial performance of the project.
Scope of Work:
- To assess market potential of the proposed hospitality component of the project, on basis of a local hotel and apartment market supply and demand analysis, as well as on the basis of local competitive set analysis;
- To prepare a concept for embedding the hospitality component into the overall development aiming to generate mutual benefit. The hospitality component offering facilities and services for the residential area.
- To prepare market and financial projections of the project for the first ten-years period of operations
- To evaluate financial feasibility of the entire project based on standard methodology of investment evaluation.
Cruise tourism Development in Africa
Scope of Work:
The overall objectives of this assignment was to streamline the procedures and processes of handling cruise ships in the region with a view to promoting cruise tourism in the Eastern and Southern African region throughout all water bodies, from ocean shores to lakes.
- Identify deficiencies in legal and regulatory frameworks.
- Harmonization of regional regulations and legislations.
- Provide uniformity in the service provision in the region.
- Developing structured standards and clear guidelines to coordinate regional activities.
- Promotion of cruise shipping in the region and enhance marketing efforts.
- Strengthen partnerships with EU cruise stakeholders by providing a strategic master plan.
- Information system will be strengthened among the stakeholders.
- Support facilities and infrastructure, such as airports, hotels, transportation, and security in addition to smooth handling of the vessels will be improved in the strategic concept.
Description of Project:
- Attend initial briefings with PMAESA and tourism Cruise conference in Durban.
- Port visits to key itineraries in Africa, interviews and data collection.
- Draft report including institutional programs, policies and interventions in cruise development, framework of funding, stakeholder workshop, findings and final report
- Draft recommended guidelines, definitions and conventions for common use by PMAESA members. Draft framework for collation of cruise statistics.
Project Status:
May 2011 to October 2011
Development of Heritage Corridor Tourism Sub-Master Plan
Scope of Work:
Guide the sustainable development, promotion and investment in the corridor in order to increase the average length of stay of international tourists in Rwanda, contributing to increase tourism revenues and job creation.
Description of Project:
Horwath HTL provided feasibility study and an integrated and sustainable Sub-Master Plan.
Assessment of the existing situation along the corridor, including assets (natural and cultural), infrastructures, tourism facilities and opportunities for sustainable development, identification of business and investment opportunities within the corridor.
Development of a physical master plan for key zoned areas in the corridor for easy implementation and coordination of tourism development.
Horwath HTL Solution & Implementation Plan:
Tourism inventory
Field mission: individual interviews, stakeholder interviews, intermediary meetings with procuring entity.
Document check-list
Development of working plans and promotional items
Preparation of: reports, marketing materials and validation meetings
Project Status:
Project Completed November 2014
Development of Tourism Digital Map
Client: Rwanda Development Board (RDB)
Year: February 2019-Ongoing
Project Overview:
- Collect information and analyze all geo data related to cultural, historical and religious tourism development along the heritage corridor;
- Create database for all heritage corridor tourist sites and facilities,
- Digitalize all the tourism related information gathered;
- Produce heritage corridor tourism digital map for tourism use purposes;
- Conduct training on the use of the digital map for RDB staff and stakeholders.
- Data hosting and detailed information on national server focusing on the sustainability of this activity.
Contract Amendment and Management Support for UCL
Client: Ultimate Concepts Ltd
Year: Dec 2018-ongoing
Project Overview:
- Conclude the negotiation for the contract amendment
- Establish a controlling mechanism with regular reports and regular (monthly) meetings with the
hotel management - Support the management of UCL in preparation of and during these meetings
Scope of Work:
- Understand the basis of calculation of all fees payable by you to Radisson Blu in order that we may check that these are being properly calculated and charged going forward;
- Understand the rights and responsibilities of operators of the properties, notably in relation to; Payment of management and other fees; The provision of management information;
- Any obligation, or best effort requirement to maximise revenue and/or profit and Central, regional and local Sales & Marketing activities, etc.
Strategic Advisory Services for Marine industry and Cruise Tourism
Client: AFRINEST ENGINEERING LTD
Year: April 2019 to December 2020
Project Overview:
The main purpose of this study was aiming to assist AFRINEST enter into the Rwandan market to invest into a shipyard and a cruise ship (Kivu Queen)
Scope of Work:
- Set up operation of AFRINEST in Rwanda
- Assist with contacts to government institutions, finance institutions and other tourism stakeholders
- Developing further tourism attractions along lake Kivu in order to support the successful launch of cruise tourism along the lake
- Establishing contacts to DRC in order to integrate tourism attractions from DRC and develop a cross border cruise itinerary
- Assisting AFRINEST in entering neighboring markets (Uganda, Kenya). Contacts to government institutions in Uganda and Kenya.
Tourism Development Master Plan
Client: Rwanda Environment Management Authority (REMA)
Year: July 2017- Feb 2019
Project Overview:
- Development of Tourism Master Plan For Gishwati-Mukura National Park
- Market Analysis of Gishwati-Mukura National Park and connected corridor; Inventory of existing and potential attractions and identification of investment opportunities.
- Detailed product development strategy and development of a marketing plan for Gishwati-Mukura National Park and connected corridor.
- Development of an implementation plan defining roles and responsibilities for implementation, budget estimates and timeframe.
Scope of Work:
- Review of Data and existing Plans
- Field Trips and Interviews
- Identification and inventory of potential attractions
- Public and Private investment opportunities and Needs
- Product Development Strategy
- Branding, Marketing and Communication Strategy
Implementation Plan:
Set of management guidelines for the Development of Gishwati-Mukura National Park
TVET Project
Client: Salesian of Don Bosco
Year: September 2019 -December 2019
Project Overview:
The main purpose of the feasibility study is to analyze the current situation of the Gatenga TVET School, evaluate the financial feasibility of the project on the basis of investment estimation and expected financial performance of the project and to guide the design of the hotel and improved culinary station given the vision and main objectives of the project.
Scope of Work:
- To evaluate the location of the property and its current situation;
- To assess market potential of the proposed project, on basis of a local hotel market supply and demand analysis, as well as on the basis of local competitive set analysis;
- To recommend best-use concept for the Hotel/guest house, Culinary art center, Restaurant and Bar and advise on the facilities concept;
- To evaluate financial feasibility of the project based on standard methodology of the project evaluation process;
- On the basis of all analyses performed and evaluation of the project from market and financial point of view, to present a sound concept for the project.