HLT Advisory Case Study
Due Diligence of multi-hotel portfolio purchase: Confidential Client
HLT assisted a private equity group analyze the potential purchase of several full-service, 300+ room hotels located in the downtown core of major Canadian cities. Each of the hotels was a major player in the city’s convention, business and leisure product offering. Each had been recently renovated/expanded as well as having potential additional development opportunity ranging from adding more rooms to expanding food and beverage to incorporating a residence/residential component.
HLT’s role was to parse the sales documentation prepared by the seller’s agent, assess each hotel’s position in their competitive marketplace and assess the market position and physical suitability of each hotel. Further, HLT analyzed various options for redevelopment to assist the potential acquirer to develop a pricing strategy for the hotel and to identify other potential conditions to include in the purchase and sale agreement.