Investors

In recent years hotels have become a recognized class of assets. Nevertheless, for many investors the characteristics of the operational side compared to the real estate side are often difficult to follow. Within this context HOTOUR moderates between the different interests of investors and operators by answering the following questions:


Is the purchase a specific hotel advisable?

This question can be initially answered through a Hotel Check. In case of a positive result a more comprehensive Assessment of Acquisition/ Hotel-Specific Due Diligence can verify the plausibility of the purchase.


Is the purchase price appropriate?

If the initial review confirms a purchase price scope that seems feasible to the investor, then the purchase price can be verified in detail within an Appraisal report.


Is the lease sustainable?

Is the lease or currently reached or forecasted cash flow of the hotel on offer achievable in the long run?

The scope of a lease can be clarified by applying a Quick Check. Precise lease calculations require a thorough and more detailed  analysis of the hotel project. The achievable lease depends on the location, market, category and operating concept of the hotel and can be determined through Appraisal reports of the leasehold value. If the debt service coverage of a hotel is subject to evaluation, we determine – depending on the requirements of the financing bank – either the sustainable and achievable cash flow (management contract) or lease.

 


How to deal with change of operator?

What needs to be taken into consideration at the end of the lease term or an upcoming operator change?

A change of the lessee is a highly complex and risky process that requires a lot of sensitivity on behalf of the investor. An extension of the contract with the current lessee should therefore be given first priority without neglecting the possibility of approaching alternative operators. Following an initial review, HOTOUR offers a customized package of consulting services for this purpose.
 


Lease reduction appropriate?

Is a lease reduction requested by the operator appropriate?
To answer this question, it is necessary to lead operator negotiations on equal terms. A detailed appraisal of the leasehold value can verify the achievable lease.  

 


Reference list

  • Art Invest Real Estate Management GmbH & Co. KG
  • Commerz Real AG
  • Deutsche Asset Management International GmbH
  • Honestis AG
  • JPMorgan Asset Management ( Europe ) S.à r.l.
  • KanAm Grund Kapitalanlagegesellschaft mbH
  • Morgan Stanley
  • Patrizia Immobilien AG
  • Real I.S. AG
  • Union Investment Real Estate GmbH