Savoy Hotel Baur en Ville turns Mandarin Oriental Hotel – Zürich, Switzerland
After three decades in office, the hotel manager went into retirement. The owner Credit Suisse Group AG took this opportunity to plan a comprehensive restructuring of the hotel, so they could position it in the international luxury segment. The property should undergo a substantial refurbishment programme and the operation should be managed by an internationally reputed hotel management company, thereafter. Both measures should serve to notably increase the real estate value. Horwath HTL’s expertise was called upon to help understand and evaluate the consequences of several scenarios.
Horwath HTL Switzerland provided a comprehensive documentation which served as a basis for decision-making. Therein we detailed several possible scenarios, we prepared the relevant financial projections and their expected impact on the real estate value. In a first phase Horwath HTL was able to support the restructuring process by sourcing a new hotel manager who was able to markedly improve the hotel’s performance. Parallel, negotiations with global leading hotel management companies were conducted with regard to the future operation and refurbishment planning. Horwath HTL Switzerland has continually lent their expertise to the negotiation process. Finally, Credit Suisse Group AG has decided to sign a management agreement with Mandarin Oriental Hotel Group.
The contracts were signed in November 2020; the last and final details of refurbishment will be decided on in the very near future. Construction works shall start as soon as building approvals have been received.