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Client
A leading private equity firm specializing in real estate, hospitality, gaming and entertainment.
Challenge
Assess the feasibility and profitability of a new immersive entertainment experience in Las Vegas.
Solution
The Glenroe Group evaluated and forecasted market demand, along with the visitation potential for the proposed attraction. We did this by sizing the market and estimating key economic and financial drivers. Our analysis also took into consideration local and regional leisure competition, market demographics, and tourism trends; along with regional and national economic trends.
We built a project pro forma and completed an economic and financial assessment to include project returns and alternate performance scenarios. These scenarios included revenue projections for the adjacent hotel, which was also owned and operated by the same private-equity firm. We performed competitive benchmarking to identify, quantify and price potential monetization streams. For each scenario, we developed standalone pro forma revenue drivers and related operating costs to support projected attendance levels. We also conducted sensitivity analysis to understand the impact of key revenue drivers and financial levers on project returns.
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