Mercure Hotel Gladstone | DWS Hospitality Specialists



Mercure Hotel Gladstone

DWS was commissioned by Yaralla Sports Club Inc to undertake a full market and financial feasibility study for the development of a new 60-bedroom, four-star hotel in Gladstone, Queensland.

Following commissioning, DWS produced a detailed report that included the following elements:

  • Background information incorporating location and site appraisal, details of existing business, financial performance appraisal and maintainable earnings from existing operation.
  • Market information including economic profile and outlook, hotel market performance, tourism assessment, pipeline investment projects and new competitive entrant assessment.
  • Project overview including proposed number of bedrooms, market position and proposed branded operations.
  • Projections of earnings involving detailed profit and loss projections derived from department specific modelling.
  • Cash flow modelling assessment and investment appraisal.
  • Banking covenant assessment.

Following production of the report, DWS distributed the feasibility study to a number of financiers and arranged a presentation of the project to address any queries and seek offers of funding. DWS was successful with the acquisition of finance for this project from a major institutional lender. A presentation was subsequently delivered to the board of directors to inform approval of capital expenditure for the project.

Negotiations with national hotel operators were on-going during 2011 and DWS assisted with the selection of an appropriate operator, Accor Hotels under the Mercure brand. Construction commenced in 2011 and was completed in December 2012.

‘DWS was instrumental in accessing finance and offering expert advice throughout the development process. Their contacts in the hospitality funding arena allowed us to acquire competitive finance. We would recommend the involvement of DWS with producing a high quality document and leveraging of contacts in the funding sector.’ – Will Schroeder, CEO, Yaralla Sports Club Inc.


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