Valuation for a Hotel Management Company

We were instructed by a HKEx main board listed commercial real estate development, management and investment firm to provide valuation services for a hotel management company to be acquired.

 

The subject management company is a leading hotel services provider in China. She currently manages over 60 operating hotels in China and has been contracted to manage over 30 further hotels which are under construction, including 3 hotels in Malaysia and Turkey. All these hotels are of generally 5-star standards.

 

The revenue of the management company generates from hotel operation management, hotel franchising under her brands, consultancy services for hotel positioning, as well as disposal advisory services.

 

Some key information of this project is as follows:

  • Consideration:        HK$878 million  

  • Valuation Scope:    equity interest valuation

  • Valuation Method:  market approach