Project Scope

The valuation of the Radisson Blu Hotel in Sopot involved a comprehensive analysis to determine its market value, focusing on its operational performance, market positioning, and physical characteristics. Using the income approach, the hotel’s ability to generate revenue was assessed by analyzing financial performance metrics such as occupancy rates, Average Daily Rate (ADR), and Revenue per Available Room (RevPAR). This data was used to calculate the Net Operating Income (NOI), which was then capitalized at a market-appropriate rate to estimate its value based on income potential.

To provide market context, the market comparison approach was employed, analyzing recent sales of comparable hotels. This helped position the Radisson Blu within the competitive landscape, taking into account its prime location, brand affiliation, and high-quality facilities. Additionally, the cost approach was used to estimate the value based on replacement costs, adjusted for depreciation and obsolescence, ensuring a reliable cross-check of the results.

The valuation also considered the physical condition of the property, its brand strength, and its strategic market position in Sopot. Broader factors, such as the local tourism market, economic trends, and regional demand drivers, were integrated into the analysis. These combined methodologies provided a robust and reliable estimate of the hotel’s market value, reflecting its income-generating potential and its appeal as a premium asset in the hospitality sector.

Project Location

Sopot, Poland