Valuation of Hospitality Business (Particularly Hotels) in 2021
- The recent pandemic had an unprecedent impact on hotel industry due to imposed travel restrictions and due to impact pandemic had on macroeconomic situation. Hotel industry has been facing plummeting sales and EBITDA and as a result, an uncertain short term future. We will have a look at how the situation impacted most recent 2020 results of Hotel companies in Slovenia and in near regions and could see that the impact varied depending on location (potentially also government stimulus).
- In the second part of the presentation we will have a look at a valuation case and will focus our attention on how to prepare a projection and what to focus on in current environment. We will investigate if there are parallels that we could draw from previous crises in 2007 & 2008, despite of the fact that the financial crisis had a very different origin. In this sense we will review also pre COVID-19 and post COVID-19 market transactions and hotel valuations in reference to market cyclicality.
- In the final part of our presentation we will review a high level hotel business valuation and focus on preparation of different scenarios (based on changes in key assumptions, e.g. expected time of industry recovery). Due to the fact that different scenarios result in wider spread of valuation results we will also touch on formation and support of valuation conclusion.
Session A-2, 11:30 am – 12:30 pm
Karin Lušnic, ASA ARM
BDO Advisory Slovenia | Partner, Financial Advisory
- Karin Lušnic is a partner at BDO Advisory Slovenia since March 2018. Prior to that she worked for 6 years at KPMG‘s FAS department and managed her own valuation firm KLBV d.o.o. for 10 years. During that time the KLBV established itself as a recognized partner for valuation related projects on Slovene market.
Certifications and credentials
- Business valuation appraiser holding Slovene BV appraiser designation granted by the Slovenian Institute of Auditors.
- ASA and ARM (accredited BV appraiser & reviewer at American Society of Appraisers).
- Licensed court expert (corporate finance segment).
Experience and Memberships
- Karin has close to 20 years of working experience in the field of financial advisory services with a focus on valuation engagements and financial due diligence engagements. In the past 3 years she worked on several medium to big size valuation engagements in hospitality industry, real estate management industry and IT industry.
- For the past 10 years, Karin has been also engaged as a lecturer at the Slovenian Institute of Auditors for business valuation certification program (focus on International Valuation Standards and Methods of Valuation).
- In addition to that, she is also a member of Advisory Forum Working Group at the International Valuation Standards Council (IVSC).