Real estate modelling
A real estate group that owns a number of hotels within Scandinavia and Europe was looking expand and obtain funding from lenders. They required an operational model that identified the profitability of each hotel and the consolidated cash impact and its funding capacity.
The challenge
A major challenge was to establish a model that was able to consolidate over 150 hotel operations and incorporate contractual assumptions that were continuously changing. Furthermore, we had to ensure forecasts reflected historical trends in seasonality and demands for each country/city the hotel operated in.
The outcome
We designed and delivered a dynamic model which forecasted and consolidated all the hotels in a consist way. Using best practice modelling, adjustments to forecast assumptions could be made allowing the client to identify underperforming hotels. In addition, a forecast of their cash balance could be analysed based on key cash receipts, payments, incentives made to/from customers, hotel operators, suppliers and contractors.
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