The Client

A consortium of private investors with a stake in a seafront hotel and residences development in Cyprus.

What did Hotel Solutions Partnership achieve for the client?

Hotel Solutions Partnership presented the client with a comprehensive Development Status and Construction Cost Analysis Report enabling the client to understand the project’s major issues and timelines required to successfully complete and operate the hotel.

Background

The client recently took a controlling interest in a partially-completed beachfront location resort development in Ayia Napa, Cyprus.  The development includes a circa 200-key 5-star hotel with associated facilities along with 70 apartments and villas.   The project’s developer advised that the project has run over budget.

Client Need

The client approached Hotel Solutions Partnership (“HSP”) for independent confirmation of the project status and cost to complete, and an assessment of the options available on the development.

Scope of Work

HSP undertook a review of the existing hotel component of the project, comprising: Data Assessment and Development Status Report including a review of existing hotel plans as follows :

Data Assessment

Review of the following documentation:

• Construction contracts
• Financial reports
• Detailed plans including architectural schematic and working drawings, civil & structural, MEP and FF&E schedules.
• Variations and time extensions

Development Status Report & Hotel Trading Assessment

HSP determined the required costs and time to complete the project in view of a high-level hotel trading assessment. This included:

• Considering options to change the design/layout of the development to better match market conditions given “as is” status
• Preparing fit-out estimates based on target market positioning
• Assessing necessary time to complete
• Estimating total cost to complete the hotel
• Identifying major issues needing resolution