TRI assisted Mace with the conceptual development and feasibility study of Dubai World Trade Centre (DWTC) redevelopment on Sheikh Zayed Road. Covering approximately 50,000 m2 of land area including the landmark World Trade Centre building, planned redevelopment included addition of hotels, apartments, offices, club, retail, entertainment facilities, and extension of conference and meeting facilities at an expected cost of AED 5.8 billion in 2006. TRI provided strategic advice and recommendations on the master plan after analysing in detail the demand drivers, growth potential, and current and projected market performance of various real estate sectors in Dubai. Project specific financial model was developed to assist client in understanding the feasibility of the project, component and parcel.
Covering 21.2 million square foot of land area from Police College on Sheikh Zayed Road to Al Wasl Road along the beach, the AED 91 billion Jumeirah Hills mega project planned to convert the brown field site to an entertainment city capable of attracting 35 million visitors a year. Over the two-year period, TRI assisted Sama Dubai on a series of consultancy assignments including comprehensive market research, identification of market opportunities / needs / requirements, commenting on key issues / trends within each market, validation of proposed project plan, preparing preliminary development brief, preparing a bespoke financial model, and conducting detailed financial analysis for the full master plan.
The project envisioned the development of an innovative development with exceptional activities to take advantage of the extensive water frontage. The initial master plan comprised of seven precincts with a GFA well over a million square metres which included high-end residential communities, shopping mall and high-street retail, government complexes, waterfront promenade, marina and multiple hotel developments. TRI prepared a comprehensive evaluation of the relevant real estate markets and completed the project in two stages: a master plan validation to evaluate the proposed and alternative development schemes, followed by a market and financial feasibility study with full component financials.
TRI assisted Sorouh in assessing the viability of the landmark AED 5.7 billion Shams Marina project, one of the five precincts within the Shams Abu Dhabi Development covering 1.75 million m² on Al Reem Island in Abu Dhabi. The multi-billion dirhams real estate project included residential, retail, entertainment, hotel, branded apartments, and a marina. Our study provided a comprehensive review of the relevant hotel, real estate, and marina markets, followed by development recommendations and financial analysis of the project using custom-built model.
Abu Dhabi National Hotels (ADNH) operates ten hotels in Abu Dhabi, Dubai and Fujairah under the Al Diar Brand. All properties have historically performed very well, however, the increased competition driven by the opening of new hotels and other internal and external factors have caused a decline in financial performances. Consequently, ADNH has requested TRI to undertake an operational review of the Al Diar hotels portfolio, assess the strategic options and comment on the brand equity of the Al Diar brand and its impact on the subject properties.
The project is a proposed resort oriented mixed-use development which was considered to be developed in support of Oman’s Government strategy for economic growth and diversification in the Dhofar region. TRI was commissioned to carry out the market and financial feasibility study, outlining detailed analysis of the Oman hotel and tourism market, supply and demand interaction model, critical success factors required for the successful development of the hospitality assets and financial appraisal for the proposed project. At a later stage TRI assisted OMINVEST with the operator search for the proposed hotel.
Sofitel, Accor’s luxury hotel brand, required TRI to prepare a market study for its expansion in the region. The study involved a desk-based study to identify market opportunities for Sofitel hotels in 19 cities across 15 countries in the region. Based on a detailed analysis of the current and future supply and demand characteristics of each markets and performance benchmarking, TRI provided recommendations on the opportunities for development of Sofitel hotels in each market including primary and secondary locations, positioning, size and configuration, and timeline for development of hotels.
Preparation of a strategic development plan for the proposed expansion of the Elaf Hotels in 15 cities across the Kingdom of Saudi Arabia. The study included reviewing opportunities to establish Elaf-branded five, four and three star hotels and serviced apartments in these markets, and providing strategic recommendations on locations, positioning, size and configuration, and timeline for development of hotels. TRI also reviewed the impact of branding on Elaf hotels, and evaluated strategic options available (such as build/lease/franchise) for Elaf to boost growth and improve returns from its hospitality investments. In addition, TRI also provided a market overview and recommendations for the Hajj & Umrah and Travel & Tourism divisions of the company.
TRI assisted the client by conducting a market and financial feasibility study for hospitality, residential, marina and beach club components of the Mina Al Arab project in Ras Al Khaimah.
The study included an assessment of the proposed masterplan and TRI's recommendation on alternative development schemes which were deemed to improve the market supportability and economic viability of the project. In addition, TRI provided assistance to the client in successfully negotiating a hotel management agreement for the upscale eco-lodge.
Aabar Properties is the leading Abu Dhabi real estate development, management and investment company, required TRI to prepare a detailed review of a land use plan for multiple sites. The study included an appraisal of eight development sites earmarked for the development of five and four star hotels, serviced apartments and residential buildings. The study contained recommendations on the number and type of hotels and furnished apartments that should be developed and detailed development recommendations including product concept and positioning, facilities provision, phasing and funding strategy. Furthermore, TRI assisted Aabar Properties with the operator search for the proposed hotels and serviced apartments.
ADCMC is a large Mixed-Use development spanning 600,000 sqm of land, consists of clinical facilities, hotels, spa, shopping facilities, housing, mosque, parking, polyclinic, doctors clinic and medical university. TRI was commissioned to provide a market and financial study for the proposed hotel, spa, shopping and residential components of the project’s first phase. Our study provided a comprehensive review of the relevant hotel, spa, retail and residential markets, followed by development recommendations and financial analysis of the project using custom-built model.
TRI assisted KAEC with the development of a Hospitality Sector Report highlighting the investment opportunities for hotel developments in the city. The report was launched during the Arabian Hotel Investment Conference (AHIC) and is a key document for attracting potential investors for the various development sites which include luxury resorts, hotel apartments, lifestyle and budget hotels. TRI conducted an assessment of each development site and provided recommendations on the ideal positioning and facilities of each site along with projected performance levels, development timeframe and costs and return on investment indicators.
Project Humanity is a project commissioned by the King Abdulla Foundation on a large tract of land in Rahmaniyah District of Riyadh, encompassing a 300-key luxury hotel, a 13,900 m² convention centre, an 18,191 m² office building, luxury retail units and other non-revenue generating components such as a mosque, car parking and staff accommodation. The hotel and convention centre are estimated to cost nearly SAR 1 billion. TRI was requested to evaluate the financial feasibility of the project, carrying out scenario analysis with varying product positioning. Furthermore, TRI provided the whole gamut of hotel operator search assistance from recommending appropriate hotel brands to evaluating short-listed MOU’s to finalizing the hotel management agreement.
TRI assisted DAMAC Hospitality with a detailed market and financial feasibility study for the upcoming Trump Golf Course as part of the Akoya Residential Development in Dubai. Our work included recommendations on membership structure and pricing, positioning and facilities for the golf club, hotel and spa based upon extensive market research and analysis of the hotel and golf market in Dubai and wider GCC.
Review of the ADAC master plan for the proposed redevelopment of the Abu Dhabi International Airport. The study included detailed market and financial feasibility studies for the Airside Hotel, Gateway Hotel, limited service hotel and a five star hotel. For the purposes of the study TRI prepared case studies of 12 comparable international airports to assess their strengths and weaknesses, evaluate tourism traffic and proposed re-development plans.
Valuation of a publicly listed hotel investment company with a portfolio of six hotels, a hotel management company, managing 22 hotels in addition to a construction company. The hotels were valued using income capitalisation, comparable sales and replacement cost approaches, whereas the hotel management company was valued based on present value of projected cash earnings, PE multiple and book value. In addition, alternative scenarios were prepared based on a planned strategic alliance. The valuation was required for a possible investment into the group by the client, which did in fact take place.
TRI was contracted to advise this client on the potential acquisition of sites at Amwaj Island, and specifically to advise on the suitability of the suggested price. In support of this advice, TRI carried out feasibility studies on six plots of land covering uses of hotels (various categories), marina, residential and retail, providing relevant market data and benchmarks, revenue and profitability projections for each component and an indication of the value for each plot of land. Our deliverables included a detailed report with recommendations, and a presentation.
TRI conducted a full market assessment for an island off the coast of Kuwait. TRI collected detailed market information to provide recommendations on changes to components within the master plan (including hotels, residential apartments, retail and marina). On agreement with the concept changes, TRI conducted a full financial assessment of the mixed use development to provide projected profit and loss and cash flow statements to calculate a project IRR, and a balance sheet. Deliverables included written reports that covered the relevant market data and concept recommendations, plus a detailed financial report. TRI also provided numerous presentations and further assisted the client in preparing bid documents for construction tenders.