Investment Opportunity Assessment

Investment Opportunity Assessment – New Zealand

Location: 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