Valuation of a Wellness Resort in Indonesia
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Assignment
A boutique hotel chain known for its ultra-luxury travel resorts at exotic locations around the world approached us for valuing its resort in the heart of the Balinese jungle.
Our Approach
Outcome
We performed a customary DCF valuation to come up with the value of the resort based on the free cash flows it is estimated to generate. We then validated this value using the price-per-room sales comparison method, by identifying similar boutique hotels from within our subscribed databases. This was further corroborated by applying the room-rate-multiplier valuation technique.
The three-pronged approach in valuing the resort enabled us to consider parameters beyond the traditional valuation techniques and arrive at the fair value of the business.