Sale and purchase of hotels and hotel investment financing
We have the necessary expertise and local and international contacts to undertake a hotel marketing and sale, from initial analyses to the necessary documentation preparation and successful sale or purchase execution. To hotel investors, in addition to the hotel acquisition advisory, we can assist them in raising the necessary funds for completion of the hotel acquisition and/or its reconstruction or redevelopment.
Services to hotel sellers
- Comprehensive due diligence of the hotel offered for sale,
- Analysis of the hotel operating metrics
- Hotel valuation
- Asking price determination
- Drafting usual documentation for marketing the project to investors-teaser, sales memorandum etc
- Contacts with hotel investors utilising our global distribution network of over 100 corresponding offices worldwide
- Direct contacts with financial and strategic hotel investors worldwide
- Support in negotiations, offers evaluation and general advisory until the successful sale of the hotel
Services to hotel buyers and investors
- Identification of the potential acquisition targets
- Due diligence analysis of the intended purchase
- Analysis of the hotel operating metrics
- Preparation of proforma cash flow projections as well as projections of future Income Statements, Balance Sheet and other elements of annual financial performance projections
- Investment risk analysis - scenario analysis, sensitivity analysis, break-even, time series, Monte Carlo simulation, regression analysis
- Discounted Cash Flow Analysis
- Business or investment plan preparation for hotel investors as borrowers to raise debt capital locally or internationally for purchase and/or hotel redevelopment or reconstruction
- Acquisition fund structure (equity, debt, mezzanine) and cost modelling,
- Debt Service Coverage Ratio (DSCR), Debt Service Reserve Account (DSRA), Maintenance Reserve Account (MRA) analysis and modelling
- Hotel valuation
- Tax efficient investment and funding structure
- Calculation of hotel investment metrics - equity multiple, IRR, NPV, key financial ratios,-liquidity, leverage and profitability
- Optimal holding period analysis to maximise investment return
- Bid price determination
- Drafting usual documentation for lenders or other sources of acquisition finance
- Contacting lenders and other sources of debt or hybrid capital finance
- Support in purchase and/or capital raising negotiations until successful completion
- Hotel investment exit strategy
For hotel sale and acquisition we offer “one stop shop” advisory (financial, legal, accounting, environmental due diligence etc) in association with our experienced partners in their respective fields of expertise.