Preparation of a financial model for a proposed holiday resort

Background/ Situation

Our client had an opportunity to enter into a lease agreement for a large holiday resort on the Sunshine Coast of Queensland. The venture would include using existing infrastructure but also undertaking extensive additions. The result would be a totally new holiday concept.

MACHUS’ brief was to prepare a financial model of the proposed resort. The model would enable stakeholders to understand the financial potential of the project. MACHUS was directed to serve the one client on this particular occasion.

Initial Findings

Our client had an extensive experience managing high end resorts and provided most details regarding rates and charges affecting the project and expected patronage.

Solutions, Strategies and Recommendations

The strategic framework for the model was provided by the client. Therefore, no other strategies or recommendation were submitted by MACHUS for our client’s consideration.

Implementation and Results

An extensive model was designed and published by MACHUS. It included assumptions underlining each item with separate statements for each major activity. The model provided five-year Profit and Loss projections as well as a Sensitivity Analysis which adjusted the whole model when changing major assumptions.