Madrid - Success Stories

Mandarin Oriental Barcelona

Summary
HVS was asked to prepare a feasibility study and valuation for the Mandarin Oriental Barcelona. HVS was chosen because we have an excellent ongoing relationship with the client and they felt that HVS had the required ability, experience and existing knowledge of the market

Project

• The project was developed by Reig Capital Hotels and Resorts, a division of Reig Capital Group, a Barcelona based holding company with roots in Andorra, with interests in real estate, agriculture, tobacco, banking, luxury retail and leisure.
• The Mandarin Oriental Barcelona located in one of the most exclusive areas of Barcelona, the Paseo de Gracia, is surrounded by other iconic buildings many designed by Antoni Gaudí. The Hotel is the first Mandarin Oriental to open in the Iberian Peninsula and is destined to become a luxury benchmark for the region.
• The Hotel comprises 98 rooms and suites, a lounge bar, a dining terrace, a signature restaurant and a Mandarin Oriental branded Spa.

The Assignment

• With extensive experience in Spain and especially in Barcelona, HVS Madrid, lead by Philip Bacon and Sophie Richard, was instructed to prepare a feasibility study, valuation and return on investment analysis for the Hotel and facilities in 2007.
• HVS was chosen because of our extensive related experience and knowledge of the region as well as the relationship that we have with the development team at Reig Capital Hotels and Resorts.
• As the project was evolved HVS was asked on several occasions to update our valuation analysis and help the Reig Capital team to determine the best business model for the property.

Results

• From our extensive knowledge, different valuation and return on investment scenarios were prepared for each business model.
• Based on the information provided and our understanding of the market we were able to advise the client regarding the best business model to develop.
• Based on the results of our work, Reig Capital Group successfully secured debt financing and proceeded with the development which opened its doors on the 27th of November 2009.
• We are delighted to see that this project has been successfully implemented based on HVS analysis and recommendations that were produced during almost two years of close collaboration with Reig Capital Hotels and Resorts.

If you wish to receive more information on Barcelona, contact Sophie Richard at srichard@hvs.com.

Facade	View from the penthouse
Lobby