Hotel Portfolio

An international investor required a consolidated valuation of a portfolio of three hotel units in the Algarve, to support an investment decision, taking into account the strongly seasonal nature of the regional tourism market.

We used the income approach through a discounted cash flow model, with ADR, occupancy rate and cost structure projections specific to each unit, supported by regional hotel market data; this method was further verified using the comparative market method to assess the average value per accommodation unit in similar transactions in the region under normal market conditions. Results were presented both individually and on a consolidated basis.