PROJECT EXPERIENCE
Hotel Conversion Study
Limassol, 2018
On behalf of a foreign investor, Navigator identified a seafront hotel in Limassol suitable for renovation and conversion into a boutique hotel.
The present hotel property is located on the coastal avenue near the Molos seafront. Dating to the 1980s, the property has 7 floors and 32 hotel rooms. The hotel has not been renovated since its foundation.
Our responsibilities included:
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Development of an “as is” analysis based on public information;
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Modelling of total renovation costs, including roof garden development;
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Modelling of room renovation costs;
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Modelling of taking over a ground-floor restaurant (currently contracted out to third parties) and re-integrating it into hotel operations as a lounge, restaurant and checkin area;
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Development of an integrated financial model for hotel occupancy, average daily room rate (ADR), food and beverage income, and expenditure under various price and occupancy sensitivities and assumptions;
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Calculation of full capital expenditure costs and return on investment.
Our hotel feasibility study showed an excellent potential for both financial return and success of the investment, given the hotel location.
For further information on our hotel feasibility study and due diligence expertise in Cyprus, please contact us.
