- Business Strategy: ADDFORCE Inc.
- Financial Planning: ADDFORCE Inc.
- Acquisition Advisory: ADDFORCE Inc.
The project anticipates developing a brand new hotel chain in Portugal. Investor needed to optimize business strategy in terms of market entry, achievable payback and market positioning.
ADDFORCE conducted a comprehensive market and legislative review as well as analysis of market entry options, including acquisition of exiting non-branded hotels and ground-up development. We advised on the optimal scope and timing of the hotel chain development and conducted a comprehensive feasibility assessment and financial analysis in accordance with the Uniform System of Accounts for Lodging Industry.
As a result, a revised development strategy was elaborated to roll-out a new chain of branded mid-scale resort hotels with the geographic focus on beach resorts and historic locations in continental Portugal, ranging from Algarve to Cascais, Sintra, and Douro Valley. The new hotel chain will be developed primarily through acquisition, rebranding and refurbishment of existing independent hotels and the anticipated total room count will be in excess of 4,000 units.
Scale: 35-40 hotels with the total room count in excess of 4,000
Timing – 5-8 years
Cost (acquisitions and refurbishment) – $150 million
Annual Revenue (stabilized) – $69 million
Market Value (upon full development and stabilization) – $220 million