Financial Modelling to Support a Dubai Hotel Acquisition
A Dubai-based 4-star hotel operator was evaluating further portfolio expansion through hotel acquisitions. Management needed to understand the performance of its existing operation, assess potential acquisition opportunities, and determine how expansion could affect profitability, cash flow and funding requirements.
We developed integrated operating and financial forecasts and supported management's acquisition assessment through scenario modelling and financial analysis.
Key questions for an expansion decision
Management needed to understand the financial performance of its existing hotel operation and assess whether further portfolio expansion through acquisition was viable.
Existing hotel performance
How the existing hotel was performing against key hospitality metrics, including occupancy, ADR and RevPAR.
Acquisition economics
What revenue, cost and profitability profile a potential acquisition would create for the enlarged portfolio.
Cash & capital requirements
What the cash flow and capital requirements of expansion would be, and how these could be funded.
Sensitivity to assumptions
How sensitive the projected outcomes were to changes in operating assumptions.
A financial model for today and tomorrow
Haseeb & Partners developed integrated operating and financial forecasts covering the existing hotel and potential acquisitions, incorporating key hospitality drivers and supporting management's acquisition assessment through scenario modelling and financial analysis.
Current Operations
Modelled existing hotel performance
Acquisition Scenario
Analysed potential acquisition opportunities
Enlarged Portfolio
Assessed the financial impact of expansion
Supporting the investment decision
We supported management's acquisition assessment by testing operating assumptions, investment scenarios and the financial implications of different acquisition opportunities.
Financial & investment analysis, not independent property valuation.
Haseeb & Partners did not act as the independent property valuer. Our role was to support management's investment and valuation assessment through financial analysis, forecasting and scenario modelling.
The analysis supported the acquisition of an additional 125-key hotel.
Portfolio Visibility
A forward view of the enlarged portfolio and operating performance.
Capital & Liquidity
Clarity on capital requirements, funding options and future liquidity.
Acquisition Scenarios
The ability to assess different scenarios before committing additional capital.
A model for what's next
The modelling framework continues to support management's existing hotel operations and the assessment of future acquisition opportunities.
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If you are evaluating an acquisition, planning an expansion or need a clearer financial picture to support a significant business decision, our financial modelling and advisory team can help.
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