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Hotels: an attractive asset class

Market opportunity

Take advantage of demand disruption, execute value add investments and reap benefit of well positioned but undervalued assets with strong earnings profile

Opportunity for pro-active value creation

Drive active value creation and IRR through targeted restructuring, repositioning, refurbishments, extensions, forward-funding and forward purchase of well-located hotels

Well diversified portfolio

Next to geographic diversification, manage property and tenant risks through a variety of strategic tools including operating structure, hotel positioning and choice of relevant branding

Enhanced running return characteristics

The variable lease components offer significant upside potential from both asset level initiatives and market upswing while minimum rents offer downside protection

Sound market fundamentals

Tourism will remain a global growth industry. The growth projectory is based on long-term demand trends stemming from global demography, wealth creation, economic interaction beyond intermittent international demand shocks

Our investment philosophy

Focus on proactive value creation

Active asset management and income generation

  • Provision of “hands-on” asset management in-house ensures liaison with hotel tenants to drive performance resulting in rental income uplift
  • Identifying and implementing asset improvements via e.g. restructuring or property improvements further driving value uplift

Redevelopment/ expansion

  • Cost-effective, timely and innovative execution of renovations with in-house expertise
  • Optimise room mix, increase revenue generating areas or extend the building to ensure the maximisation of value

Repositioning

  • Re-brand to the relevant position in today’s market thus enhancing value
  • Reflect the distribution channels and brand recognition in the relevant market segments

Re-leasing

  • Restructure existing leases to hybrid rent to participate in upside, extent terms
  • Identify new long-term tenants with innovative concepts, management strength and solid covenants that contribute to the success of the hotel

Portfolio management

  • Create a well-diversified portfolio across geographies, markets, brands, tenants for trading hotels complemented with new build projects to deliver brand new assets
  • Established reach to secure lending with best placed lenders
  • Active risk management and proven reporting excellence

Our Investment focus

Branded hotels with value add potential

Internationally branded or brandable business hotels or projects with value add potential in major European cities or leisure concepts in metropolitan areas with restructuring, repositioning or expansion opportunities or potentially forward funding of new developments.

Target properties fulfil the following criteria:

  • €30-€100 million of value per asset
  • Situated in a urban or integrated location with a minimum population of circa 500,000 inhabitants and 1 million overnight stays p.a.
  • Strong locations with good transport infrastructure and access to demand drivers, corporate and leisure with 100 rooms
  • Dominant use as hotel, only minor other uses
  • Preference to innovative, modern, digital brand concepts
  • No ground up developments
  • No minority interests

How to invest with us

We have a successful track record partnering with global, highly-reputable and like-minded institutional investors, including some of the world’s largest sovereign wealth funds, pension funds and insurance companies.

In the hotel investment sector, we offer our partners the ECE European Lodging Recovery Fund (planned) and the ability to manage segregated accounts and co-investment opportunities with professional investment partners in the sector.

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