Hospitality | Hotel
Ashish Patel, a seasoned hotel entrepreneur, identified an average performing 4-star hotel property. With hotel operations pedigree, he knew that he could lead the turnaround if the hotel were his. He approached investors and bankers with a proposal to raise a mix of debt and equity along with his capital. The proposed amount was $6MM. A part of the fund was to be used for renovation.
Working on a short deadline, we first developed the projected financial statements [BS, P&L, and Cash flow]. The projections were based on the property’s past performance and the growth that the new management would bring. We created a scenario-based model to explain the revenue and profit potential in different scenarios. The statements also included validated assumptions for key hospitality industry metrics such as RevPAR, ADR, and occupancy.
The next part was to write a compelling business plan that would convince the bankers and investors about management’s capability to bring higher value out of an existing hotel property. The team ensured that the key points are covered and delivered concisely and compellingly.
AlphaValley Advisors delivered an investor-grade business plan and financial pro forma statements within eight business days of the project commencement. Investors and banks accepted the business plan, and Ashish successfully raised $7MM (mix of debt and equity).
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