Arbitrage provided investment side technical advisory services in relation to the due diligence of a 4-star hotel resort complex with more than 320 rooms. The purpose of our technical due diligence work was to inform the decision making of the investor in respect of the acquisition and subsequent refurbishment of the resort complex.
Our technical advisory team focused on the “red flag” technical issues, especially on the planning and MEP installation aspects as well as on the upgrade renovation costs. We provided to the investor the following technical services:
- Reviewed the available technical and planning documents
- Assessed the compliance with existing building regulations
- Identified any required planning related action needed ahead of any legal transfer of the Property
- Conducted a macroscopic structural evaluation
- Assessed the existing MEP installations and the current repairs state
We also conducted a high level capital expenditure (CapEx) assessment for the subsequent 4 different renovation scenarios
- ‘’As is’’ refreshment of common areas and room fittings with replacement of any MEP installations only when necessary
- Limited refurbishment of common areas, rooms fittings and landscaping as well as upgrade and replacements of the aged MEP installations
- Deep refurbishment to a 5-star complex with the installation of an energy efficient MEP infrastructure and the addition of private pools in the rooms and new F&B facilities
- Deep refurbishment to a 5-star as per above including a targeted room merge with associated building adjustment works
