Cash Flow Analysis for Melia Ho Tram at The Hamptons – Ho Tram, Vietnam

Project Melia Ho Tram at The Hamptons Client Tanzanite International Site Area 4.2 Ha (condotel area) Location Ho Tram, Ba Ria-Vung Tau Province, Vietnam Services Operational Costs and Revenue Analysis, Feasibility Study and Operator Selection

The Challenge

Tanzanite International was planning their first condotel project in Ho Tram, a new resort destination in close proximity to Ho Chi Minh City. The developer had a background in fund management but was unfamiliar with the dynamics of hotel operation. Therefore, the client required a hotel consultant to forecast future hotel performance to be used as a basis for finalising their condotel sales structure, rental pool agreements and management planning.

Our Solution

Alternaty built a comprehensive financial projection model of hotel operations to assess the return on investment at different performance levels. With strong experience in hotel and resorts, Alternaty estimated the operating profit that such a condotel resort was realistically able to achieve, considering the Ho Tram market conditions and hospitality performance benchmarks. The analysis assisted the client to determine the underlying operational costs, the possible break even point and asses the risk of a worst case operational scenario. Taking into consideration Alternaty’s analysis and advice, the Client was able to make informed decisions with regards to their rental pool program and was able to accurately design the cost sharing structure.