Project Information :



Category:

Valuation



Place:

Amwaj Islands

The ARC Five Star Hotel – Amwaj Islands

This is a high luxury Five Star hotel and Resort spread over 46,300Sq.m. of land having total built up area of 51,300Sq.m. and this is 14 storied with a basement and a mezzanine floor. It comprised 291 of various types of sea view, and non-sea view rooms, 20 sea view suites including a royal suite with private terrace and pool. In addition to accommodation, there are 3 Nos of Swimming pool with deck, Moderate Gym, Steam & Sauna, Games room, Musical Water fountain and children’s play area, Water garden park, Private beach, Ballroom, Banquet hall having capacity of 800 people at one go, Executive lounge, Ballroom and pre function facilities, Business and conference center, 4 Retail units,10 Restaurants with lobby café, terrace dining, Bar & Lounge , Jetty, Massage room, fitness studio, Tennis courts, , Beauty salon, meeting rooms, 7 Nos of Spa treatment, a steam room & a Moroccan bath, Health care center, 3 kitchen etc.

The client is a financial institution has given the drawings, and financial statement of year 2017, 2018,2019,2021, and 2022 where reliability on them were doubt for year 2021 and 2022 since COVID -19 hit adversely in Baharain during those years. So, we used to value the subject property with the use of DCF based on the apportionment of income as well as expenditure based on the average of year 2017 to 2019 despite the occupancy level at the start took place where it was stood at end of year 2022 as 50% and assume will be sustained at 65% at the end of year 2026. However, we manage to developed a shadow cash flow using competitive set of passing hotel room rates including the subject to get idea on Average Daily Room rate(ADR), Revenue Per Average Room (RevPar), average occupancy and their increase etc. However, we could manage to report evidence-based Market Value of the subject instead of advisory threat from the client.