
Hospitality Experience
Valuation and Support for Acquiring a Portfolio of 8 Hotels
Horwath HTL was engaged in a Valuation and Assistance for the Acquisition Proposal of a Portfolio of 8 Hotels.
The valuation and support for acquiring a portfolio of eight hotels required a comprehensive analysis of each property’s financial performance, market positioning, and potential for growth. Our consultants were engaged to provide a detailed evaluation that would guide the client in making informed acquisition decisions and support the integration of these assets into their existing portfolio.
The process began with a thorough review of the operational and financial data for each hotel, including occupancy rates, average daily rates, revenue per available room, and historical financial performance. A market study was conducted to assess the competitive dynamics in each property’s respective location, evaluating demand drivers, trends, and pricing strategies. This analysis helped to identify the relative strength and weaknesses of each hotel in the context of its local market.
Financial modelling was a key element of the evaluation. We applied various valuation methodologies, including discounted cash flow analysis, capitalisation rate assessments, and market comparisons with recent transactions of similar assets. Sensitivity analyses were conducted to understand the impact of different scenarios, such as shifts in market conditions or changes in operational efficiency, on the portfolio’s potential returns.
Strategic advisory support was also provided, focusing on potential synergies across the portfolio, cost optimisation opportunities, and strategies for improving performance across underperforming assets. We worked closely with the client to identify areas where operational efficiencies could be achieved and where brand alignment or repositioning could enhance the overall portfolio’s value.
The final report offered a comprehensive, data-driven assessment of the portfolio’s value, providing strategic recommendations for acquisition and integration. Our work enabled the client to make well-informed decisions, ensuring that the acquisition aligned with their broader business strategy and would contribute to long-term growth and profitability.
Project Location
Brazil