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Ramee Grand Hotel & Spa Project
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Project Information :

Place:

Bahrain

Category:

Valuation

Ramee Grand Hotel & Spa Project

This extraordinary project includes a 25-story, three-basement 5-star hotel with 136 different hotel rooms and 30 luxurious suits. The accommodations are complemented by nine appealing Food & Beverage outlets, restaurants, clubs, and a modern Spa, resulting in an incredibly comprehensive offering. The assignment was commissioned by a prominent financial institution for mortgage purposes. The client provided architectural designs as well as financial figures for 2017, 2018, 2019, 2021, and 2022. Given the uncertainties associated with the pandemic’s impact in recent years, a methodical valuation technique was used.

The Discounted Cash Flow (DCF) valuation approach was used, which required the accurate allocation of revenue and expenditure. Due to uncertainties surrounding occupancy levels, projections were cautiously based on the average performance from 2017 to 2019. Despite a 40% occupancy rate at the beginning of 2022, a gradual recovery was expected, with a goal of reaching a sustainable 60% rate by the end of 2026.

This meticulous approach addressed the challenges faced by unique conditions, resulting in a comprehensive valuation that balances past facts and future possibilities for the top financial institution.