Overview
You have decided to purchase a five star hotel property in Portugal. The Hotel is about to come on the market and you have gained access to the management accounts for the latest financial year.
Assessment 2
Review the performance of the hotel based on the management accounts provided including the P&L, Cashflow and Balance Sheet.
The report should include:
a) A review of the financial performance of the property
b) Prepare a list of 'lines of inquiry' i.e. questions you wish to ask the existing owner and Finance Director of the hotel based on your results from part a)
c) Prepare a forecasted EBITDA projection for the next 10 years stating your assumptions clearly. It is not necessary to prepare detailed departmental forecasts. Indicate in your projections the worst case and best case scenarios to provide a range of results. d) Estimate the WACC for your proposed investment based on the assumption that the debt to equity ratio will be 80% debt and 20% equity. This report and EXCEL should be submitted no later than 23rd December 2025 (23:59 Swiss Time) Word count: approximately 2,000 words + EXCEL