
Hospitality Experience
Valuation of Panamericano Hotel for Sheraton Conversion
Valuation of the Panamericano Hotel Prior to Its Conversion into a Sheraton.
The valuation of the Panamericano Hotel for its potential conversion to a Sheraton-branded property required a detailed financial and market assessment to determine its investment viability and long-term value. Our consultants were engaged to conduct an independent valuation, assessing both the current asset value and the financial implications of the proposed rebranding.
The process began with a comprehensive review of the hotel’s operational performance, including historical financial data, occupancy levels, average daily rates, and revenue per available room. A market study was undertaken to evaluate competitive positioning, demand drivers, and the potential uplift in performance associated with the Sheraton brand affiliation. This included benchmarking against comparable properties and assessing brand impact on pricing power, occupancy, and guest segmentation.
Financial modelling incorporated multiple valuation methodologies, including discounted cash flow analysis, capitalisation rate assessment, and comparisons with recent market transactions. Sensitivity analyses were conducted to evaluate risks and opportunities related to the rebranding, factoring in required capital investment, changes in management structure, and projected shifts in market perception. Consideration was also given to the operational transition, assessing the impact on both short-term performance and long-term asset appreciation.
The final valuation report provided a clear, data-driven assessment of the hotel’s current and potential value under the Sheraton brand. This analysis supported the client’s decision-making process, offering critical insights into investment feasibility, financial structuring, and strategic planning for the conversion.
Project Location
Bariloche, Argentina