Project scope

Horwath HTL was engaged to provide a second opinion on the lease terms and operational feasibility of a proposed luxury hotel development with 220 rooms in the heart of Vienna. The client sought expert validation of the operator lease agreement to ensure alignment with market standards, optimised financial outcomes, and strategic compatibility with the project’s long-term goals.

The engagement began with a thorough review of the proposed lease structure, including fixed and variable rent components, revenue-sharing mechanisms, and contract duration. Horwath HTL benchmarked the terms against comparable operator agreements in Vienna and other leading European cities, ensuring they reflected market expectations for prime luxury properties.

An operational feasibility analysis was conducted to assess the project’s potential under the proposed lease terms. This included a detailed review of anticipated key performance indicators such as average daily rates (ADR), occupancy levels, and revenue per available room (RevPAR). The analysis incorporated Vienna’s tourism dynamics, focusing on its appeal as a cultural, business, and leisure destination, as well as the demand for luxury accommodations in the city’s central district.

Financial modelling was employed to project the property’s revenue and profitability under various operational scenarios. Sensitivity analyses were conducted to assess the lease’s impact on the project’s financial performance under different market conditions, ensuring the terms provided a sustainable balance between risk and reward for both the client and the operator.

The final deliverable was a detailed report providing an independent assessment of the operator lease agreement, including strategic recommendations for potential adjustments. This included insights into market positioning, branding opportunities, and long-term operational considerations.

By delivering a rigorous and market-aligned second opinion, Horwath HTL supported the client in validating the operator lease for their luxury hotel development, ensuring it was structured to maximise value and align with Vienna’s competitive hospitality market.

Project Location

Vienna, Austria