$120M Strategic Exit — Dubai Hospitality Asset
Location
Dubai, UAE
Service
Strategic & Investment Advisory
Key Result
18% above market valuation ($120M exit)
Timeline
14 weeks (Mandate to Transaction Close)
The Challenge
A GCC-based investment holding company owned a prime hospitality asset in Dubai — a 5-star hotel with 350 keys in a prestigious location. The client had determined that market conditions were favorable for exit but lacked the internal expertise to time the sale optimally, value the asset correctly, or run a competitive sale process. Previous attempts to sell the asset through conventional brokerage channels had resulted in valuations 15-20% below the owner's expectations. The client needed a strategic advisory partner who could maximize exit value through precision timing, institutional-level positioning, and targeted buyer outreach across global capital markets.
Our Approach
LEAP conducted a comprehensive asset review including financial analysis (historical and projected P&L, RevPAR trends, EBITDA margins), market positioning assessment, and competitive benchmarking against 15 comparable Dubai hotel transactions. We analyzed Dubai's hospitality cycle to identify the optimal exit window — targeting Q4 2025 when Dubai was expected to benefit from peak tourism season, EXPO City momentum, and favorable supply dynamics. We prepared a detailed information memorandum and financial model projecting asset performance under multiple management scenarios. Our team identified 12 qualified institutional investors globally — including sovereign wealth funds, private equity real estate funds, hotel REITs, and international hospitality groups.
The Solution
LEAP managed a structured, two-round sale process. Round 1 generated 8 indicative offers from the 12 targeted investors. We shortlisted 4 bidders for Round 2, providing access to a secure data room with detailed asset information, management interviews, and site visits. Competitive tension drove final offers well above initial expectations. We negotiated the final terms with the winning bidder — a GCC-based sovereign wealth fund expanding its hospitality portfolio — achieving an enterprise value of $120M (representing an 8.5x EBITDA multiple and 18% above the initial market appraisal). The transaction closed in 14 weeks from mandate to completion, with a 30-day due diligence period.
Results
$120M exit | 18% above valuation | 14-week close | 3.2x MOIC
The asset sold at $120M (18% above initial market appraisal, 8.5x EBITDA multiple). The structured process generated 3 competing offers, ensuring optimal pricing. The transaction closed in just 14 weeks — significantly faster than the 6-9 month industry average for comparable hospitality asset sales. The client achieved a 3.2x multiple on their original investment and has since engaged LEAP for portfolio-wide strategic advisory, including potential exits from two additional assets.
"LEAP's strategic timing and institutional sale process delivered results far beyond our expectations. Their understanding of the Dubai hospitality market and network of qualified buyers was instrumental in achieving this outcome. We've since mandated them to evaluate our entire portfolio."
— GCC-Based Investment Holding Company
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