Following the announcement of the departure of its tenant at the end of its lease, our client—an institutional investor—chose Sentinel Hospitality to assist it in assessing the potential for improving the profitability of a 20,000 m² office building by analysing the elements that were likely to have an impact on the profitability of the conversion for use as a hotel.
By combining a hotel expert with a corporate real-estate expert, Sentinel Hospitality has developed a mixed-use concept with a hotel, co-working offices, and retail spaces. This option was compared with the current office use in the event of a refurbishment. Our analysis took into account the challenge of the announced changes to the project’s urban environment by 2024.
Added value generated
- Assessed the anticipated changes to the project’s urban environment over five years.
- Reviewed comparable European projects in urban areas around railway stations
- Evaluated the cost of each considered option in collaboration with architect and quantity surveyor.
- Developed operating account forecasts and IRR for each option.