Team Banner
Acquisition Due Diligence Efforts for International Hotel Portfolio

Assisted in the acquisition due diligence efforts for a 200-plus international hotel portfolio. Worked for several months in conjunction with the client’s operational, accounting, and acquisition personnel to gauge each property’s market potential. Several properties were candidates for re-flagging, so we compared increases in ADR, occupancy and operating efficiencies to expenditures (hard and soft) necessary to reposition many of the properties. We interfaced with the legal team in interpreting ground leases, management agreements, franchise agreements and other documents. We also modeled the results of engineers and architects into our cash flow models. We extensively studied U.S. economic conditions and developed a base-case, pessimistic, and optimistic economic condition scenarios. Our work allowed the client to roll-up all properties’ forecasted operating results and determine a purchase price that would meet their investment objectives. This highly complex engagement involved extensive client interaction and teaming in order to best match skills with functions.