Development Strategy & Feasibility Study

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

Hilton Garden Inn

Our Client, a fixed property manager to the Botswana Public Officers Pension Fund, was considering an investment into a mixed-use development situated in Gaborone’s Central Business District. One of the elements incorporated in the mixed-use development was a 150-key hotel.

At the time of Horwath HTL South Africa’s appointment, the Client was contemplating the appointment of Hilton Worldwide to manage the hotel component under the Hilton Garden Inn brand. Horwath HTL’s South Africa-based office was appointed to undertake a review of the indicative financial projections prepared by Hilton Worldwide in respect of the proposed hotel component and the hotel management agreement drafted by Hilton Worldwide.

Horwath HTL Solution
Horwath HTL South Africa reviewed the indicative financial projections prepared by Hilton Worldwide and engaged with Hilton Worldwide with regard to the underlying assumptions employed in indicative financial projections. We also undertook a benchmarking exercise against known industry standards in order to confirm to the Client the reasonableness of the projections. Horwath HTL (South Africa) also reviewed and provided feedback to the Client regarding the commercial terms set forth in the management agreement presented by Hilton Worldwide.

The Client sought third party affirmation of the reasonableness of the indicative financial projections in order to motivate the investment and funding decision to their Client, the Botswana Public Officers Pension Fund.

Furthermore, our Client had not previously engaged with a hotel management company and therefore sought third party review of the commercial terms outlined in the management agreement. To this end, we provided the Client with our view regarding the fairness of the management agreement, and of particular concern to the Client, was that the Client was afforded favourable terms with regard to the operator’s obligations and the owner’s rights.

Project Status
The Client entered into a management agreement with Hilton Worldwide and the Hilton Garden Inn Gaborone, which is currently under construction, is scheduled to commence operations in 2018.

25hours Hotel Bikini

Overview
Live differently!” is the motto of ‘Bikini Berlin’, a project that centers on joie de vivre, intelligent consumption, prosperity without a bad conscience and sustainable growth. It began in October 2009, when the urban development contract between the Bayerische Hausbau and Berlin district Charlottenburg-Wilmersdorf was signed. The aim was to remodel the heritage-protected “Zoobogen”, which consisted of the “Bikini house” across the street from the Kaiser Wilhelm Memorial Church, the high-rise at the corner of Hardenbergplatz, the Berlinale-famous cinema “Zoo Palast”, the little high rise and the parking garage.

Since the start of 2014, ‘Bikini Berlin’ has been an urban shopping mall with gastronomic facilities, a cinema, and stylish offices. It is also the home of the 25hours Hotel Bikini Berlin.

The 7,000 sqm hotel (net square footage) has an “urban jungle” interior design concept created by design studio aisslinger, and offers 149 extraordinary rooms and suites. While on the zoo-side the rooms are fully glazed and offer a fantastic view over the extensive Tiergarten, the rooms on the other side present a ‘city life’ feeling. The guest enters the hotel via an impressive roof landscape situated above the bikini mall. A bakery with approximately 25 inside and terrace seats and a multifunctional working and event zone are placed on the same level. The 9th floor focuses on health and wellness. On the tenth floor, a restaurant and a rooftop bar with an outstanding 360° views welcomes both Berlin and Berlin visitors alike.

Solution
Horwath HTL Germany supported the 25hours Hotel Company with hotel specific project management tasks (technical assistance) acting as an interface between the hotel operator and investor. During this project, we focused on the coordination and optimization of the planning and implementation, controlling the budget for the finishing works by the investor, and in the organization of the FF&E/SOE-finishing by the operator.

Annual Plan Determination

Scope of Work
Horwath HTL was appointed by the owners of a luxury desert resort to provide an independent review of the Operator’s proposed budget, over which they were in dispute, and to independently prepare a new plan for the coming year.

Description of Project
Our Client was the owner of a luxury desert spa resort in the UAE. The resort had been developed and was now operated on the owner’s behalf by an established international luxury operator. However, the operator had a track record of underperforming its budgets at the property and at the time of our appointment the owner was concerned that the latest plan was again overstated. Having rejected the budget in the first instance and subsequently failing to reach agreement, Horwath HTL was appointed as part of the contractually agreed resolution process to independently review the operator’s submitted plan. Having determined that it was indeed unrealistic, we prepared a viable budget for the coming year.

Project Status
Faced with clear supporting evidence, the operator accepted our findings and agreed to work to our recommended plan.

Market & Feasibility Study

Scope of Work
Horwath HTL was approached to provide independent expert advice and ascertain the feasibility through a detailed market and financial evaluation of a proposed 30-key beachfront midscale hotel development on the island of Grande Comore.

Description of Project
The hotel was part of a wider project related to expansion of the tourism sector in the Union of Comoros. The proposed site had previously had a hotel on it but this had closed down and been demolished some years before. Part of our work involved understanding why the previous hotel had closed and whether there was indeed a commercial case to be made for the proposed new venture.

This was a difficult project to assess due to the fact that the tourism sector in the Comoros was still in its infancy and the consequent lack of airlift.

We concluded, however, that subject to certain conditions, including the opening of new air routes, there was potential to develop a viable hotel and as a result of Horwath HTL’s analysis of the local hotel market and the subject site, we recommended the development of a larger scale hotel with additional facilities, which was more likely to generate profits for the developer.

Project Status
The client later decided that it should develop a mid-market 35-key hotel initially, with a view to expanding to 70-keys once business picked up.

Feasibility Study

Horwath HTL was appointed to undertake a short feasibility study for a select service upscale hotel in Soho, London. The chain already had a property in London and was looking to expand.

Description of Project
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 hotel 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.

Solution
Our Market and Feasibility Study was used for financing purposes and the hotel subsequently opened in 2013.