Acquisition Due Diligence for Millennium Hilton Seoul

Project Scope

Horwath HTL was engaged as an independent consultant to support the due diligence process for the acquisition of the Millennium Hilton Seoul. The engagement involved a detailed and multifaceted study to provide the client with a comprehensive understanding of the asset’s value and market potential.

The study began with an in-depth analysis of the subject site, focusing on its strategic location, accessibility, and the physical and operational condition of the hotel. This analysis also considered the property’s alignment with market trends and its potential for future enhancement or redevelopment. A competitive review of Seoul’s top-tier hotel market was conducted to evaluate the positioning of the Millennium Seoul Hilton within the context of existing and upcoming properties. This included benchmarking against competitors in terms of performance metrics such as average daily rate (ADR), occupancy levels, and revenue per available room (RevPAR).

The financial analysis incorporated an opinion of value for the hotel, using the income approach valuation method. Sensitivity analyses were conducted to account for varying scenarios of market performance, operational efficiency, and revenue generation, ensuring a thorough and realistic valuation. This allowed the client to evaluate risks and opportunities associated with the acquisition.

The deliverables provided by Horwath HTL offered the client a clear and actionable understanding of the hotel’s current and prospective financial performance. By identifying key value drivers and market positioning, the study enabled the client to make informed decisions during the acquisition process. This comprehensive approach underscored Horwath HTL’s commitment to delivering rigorous and unbiased insights in support of high-stakes investment decisions.

Vendndodhja e projektit

Seoul, South Korea