What were the challenges?
We were appointed by our overseas client to analyse the potential future performance of a portfolio of six underinvested and underperforming hotel properties across various towns in England, assuming significant renovation and rebranding. Our senior team had to evaluate the potential and the renovation plans for each of the assets to produce market studies and valuation appraisals for the portfolio within a short deadline.
How did we overcome the challenges?
Drawing on our resources and analysts from several of our offices, we scheduled a week long road trip with two senior staff members to visit the properties, interview management of the assets and competing properties, meet with the proposed new operator, review the renovation plans, and simultaneously gather and analyse market data, key performance indicators, supply and demand data, and the actual financial data of the properties. We completed the reports and offered supporting data to the client to give them and their investors the confidence to proceed with the purchase.
What impact did we have?
Our work allowed the client to complete negotiations with the operator and secure financing to purchase the properties. We were also able to quickly respond to queries from lenders and other stakeholders to provide data-driven answers to their questions and suggest additional improvements that would benefit the overall return on investment.