Project Scope

The assignment was challenging due to its required short closing time frame, its brand affiliation relative to its location and operational challenges as it related to the expansion and government tax credits.

Horwath HTL was engaged by a national lender to conduct a comprehensive market valuation of a resort in the Bahamas. The project included assessing the resort’s current market value, the potential value of a planned expansion, and the financial impact of a proposed tax abatement. This complex engagement was managed by our Virginia office, with additional expertise provided by our Miami office.

The scope of work began with a detailed analysis of the resort’s existing performance and market positioning. Using financial statements, occupancy data, and market trends, we evaluated key metrics such as average daily rate (ADR), revenue per available room (RevPAR), and overall profitability. This baseline valuation served as a foundation for understanding the resort’s current market value.

To assess the impact of the planned expansion, we analysed proposed development plans, including additional guest rooms, enhanced amenities, and expanded event facilities. We projected future revenue streams by incorporating local market dynamics, anticipated tourism growth, and competitive benchmarks. Our team also considered operational efficiencies and economies of scale expected from the expansion.

The evaluation of the tax abatement required a nuanced approach. We modelled scenarios with and without the tax benefit, demonstrating its direct effect on operating costs, cash flow, and overall property value. This analysis provided the lender with a clear understanding of how the tax abatement would influence the resort’s financial feasibility and investment attractiveness.

Our final report included a thorough valuation summary, detailed financial modelling, and strategic insights. This analysis equipped the lender with the necessary information to make informed decisions regarding financing and investment. The engagement showcased our expertise in resort valuation, development feasibility, and the interplay of financial incentives, solidifying Horwath HTL’s role as a trusted advisor in high-value hospitality projects.

项目地点

巴哈马