Ashler Hospitality Corporation

In connection with a proposed purchase by an experienced hotel investor/operator, Ashler was engaged on behalf of a major bank to assess the value as well as the market and financial potential of a unique Vancouver hotel. This once successful property had experienced several years of very poor management resulting in a deteriorated structure, high staff turnover, poor revenues and reputation. It finally fell to being a court-ordered sale.

On behalf of a purchaser and their lender, a major Canadian bank, Ashler undertook a detailed assessment of the market, the facilities, the location and the proposed plans of the purchaser. We concluded that the property was indeed an excellent investment at about $75,000 per room which, if under competent management and following required upgrade, could command a value of at least $130,000 per room, 75% above the court-approved purchase price. Moreover, we also recommended that the facility be expanded to a more economic operating size which would further improve its potential level of net operating income and thereby its long-term value.

The sale was completed and the new operator undertook renovations and improvements throughout the hotel. Within the first year, the property was meeting the financial projections prepared by Ashler and justified the expansion that we had recommended. Subsequently the investor/operator undertook a 30 suite expansion and increased the property value to approximately $170,000 per room.