Dubai - Success Stories

The Rise of the Budget Hotel

The Project
Developed by Action Hotels – a subsidiary of Action Group Holdings – the three hotels would form a part of the groups existing and quickly expanding portfolio of three- and four-star hotel properties around the Middle East.

Action Hotels commissioned HVS to appraise three hotels, two three-star budget hotels in the UAE and one four-star hotel in Oman. HVS was instructed to provide a valuation report with an analysis of the market area in order to evaluate the market demand, and project income and expense for the proposed hotel. Consequently, this led to the valuation of each hotel as on the opening date.

The Results
In order to perform this engagement and advise the client as to the future value of the properties, we performed a detailed inspection of the properties under construction and sites and conducted a market area analysis, as all three cities have been experiencing phenomenal levels of growth over the past years. Consequently, our analysis concluded with individual future values based on the income and expense projections for each hotel.

Overall the project was a great success. The client was very satisfied with the outcome and we hope to work further with them on their various projects in the future.

The Client was quoted as saying:

“HVS provided us with several feasibility and valuations for the development of mid market hotels in the Middle East. The output was excellent, with firm and fair views of the hotel business, a clear rationale and logistic leading to clear conclusions. Throughout the assignment, all queries and issues were raised and addressed promptly and efficiently. The level of the work done was really above expectations. We have no doubt in recommending HVS for future assignments.”

Proposed Holiday Inn, Muscat, Oman