Chateau St. Gerlach – Valkenburg aan de Geul, Netherlands
Project description: Château St. Gerlach is a five-star hotel located in a former castle, in the province of Limburg. The property boasts 113 luxurious keys, a breakfast salon and high-end à la carte restaurant. Horwath HTL was commissioned to execute the valuation of the land and real estate of the entire Château St. Gerlach complex.
Horwath HTL approach: The quality of the hotel product is of great influence on the financial projections of a hotel in the market. The valuation report therefore contains analyses of the building, sustainability level and service-level of the hotel. The subsequent location analysis provides detailed insight into the facilities and connectivity of the vicinity. Even when the location is strong, the hotel can underperform when the competition is strong. Hence, the supply and demand analyses include a detailed overview of the primary and secondary competition, consisting of the average market performance as well as the estimated future development. Based on the detailed analysis, the discounted cash flows were forecasted from which the market value could be determined.
Project status: Based on the valuation, financing was approved by the bank.