Investment Opportunity Assessment – New Zealand
Project Overview: Assist a local private investor with the commercial due diligence on a 120+ room hotel, managed by a small domestic operator under an international franchise brand.
Scope of Work: Horwath HTL was engaged to prepare a brief independent review and assessment of the investment opportunity of the hotel with development opportunity, located near a major airport, with a focus on:
- location and site aspects
- current and expected future market conditions
- potential market position
- quality of product and facilities in relation to optimal market position
- market and financial performance
- performance of manager and franchisee
- assessment of management, franchise and other major agreements
- likely requirement for operational CAPEX in the immediate future
- advise and comment on potential value enhancing improvements.
Outcomes: Within one week of commencement of the assignment, Horwath provided a detailed assessment report to the investor, including a SWOT analysis of the opportunity, value enhancing recommendations and high-level CAPEX requirements.
Our report assisted the investor with assessing the value of the opportunity and formed part of his decision not to proceed with the acquisition.
Contact for Project: Wim Ruepert
