Rani Investments Group

Office: Horwath HTL South Africa

Category: Hotel Valuation

Project description: Our Client, the largest private hospitality owner-operator in Mozambique having first established its presence in the country in 1999, owned a portfolio of properties located in various destinations on the mainland of Mozambique as well as the Mozambican Archipelagos of Bazaruto and Quirimbas. An additional property located in the vicinity of Victoria Falls in Zimbabwe also formed part of this assignment. Horwath HTL (South Africa) was appointed to provide an evaluation of the Mozambique and Zimbabwe portfolio of properties.

Horwath HTL solution: Horwath HTL (South Africa) reviewed the historical performance of the respective properties and undertook an analysis of the then current market conditions in each of the relevant markets. Our research enabled us to develop an opinion in terms of the anticipated outlook for each market.

We also engaged with the Client in order to gain insight regarding developments the Client expected to implement at each property which was intended to enhance the relevant property’s value.

The culmination of our research and analysis was twofold. For each property included in the assignment, we expressed an opinion of the property’s contribution to the overall value of the portfolio given each property’s then current condition and operating environment. In addition to the “as is” opinion of value, we expressed an opinion of what we believed the potential value of each property could be if the true potential of the resorts, based on our knowhow of the relevant market and a short brief highlighting key actions, for example implementing a refurbishment program or rebranding and/or repositioning the property, was implemented. In respect of our opinion of “potential value” we supported our opinion with recommendations for each property in terms of the key actions we had considered in formulating our opinion of value.

Rani Investments successfully negotiated a long-term strategic partnership with Minor Hotel Group. Ownership of certain properties held in the original portfolio was transferred to the joint venture formed by the two organization; all the properties were rebranded and management of the properties was transferred to Minor Hotel Group.