Our client was looking for a suitable investment property, preferably a hotel in the mid- to upscale segment, considering a transaction volume of approximately € 20 million. HOTOUR was asked to take over the identification of suitable objects and in addition overview, steer and conduct the commercial and technical due diligence of the transaction process.
The aim was to work out the exact risk/return profile for the client. Using our network and our knowledge of the market, the aim was then to identify hotels with the greatest possible match in terms of location quality, operator creditworthiness and qualifications, contract term, sustainability of the lease, purchase price expectations and financial feasibility. The transaction was to be carried out in close coordination with the client’s legal advisors.
HOTOUR identified and examined various objects and projects and presented them to the investor. Through our network, we were able to identify a portfolio of a growing budget hotel operator, who wanted to sell four of his projects in a sale-and-lease-back transaction. The properties are located in primary and secondary locations, which offered opportunities for risk diversification. An additional advantage was that our client still negotiating option within the lease agreement due to our early initiation. Moreover, the target volume was achieved. On request, HOTOUR arranged a cooperation partner for the technical due diligence, who also continuously supported the investor during the construction phase and during the final inspection. Along with legal advisors, the lease agreement was successfully negotiated. The purchase contract negotiations were carried out at the same time. HOTOUR also managed the project documentation via a data room and prepared statements as a basis for bank financing.
The transaction was completed within the desired timeframe and to the full satisfaction of the parties. The hotels were completed and handed over to the owner after the final inspection. The respective locations and hotel markets subsequently developed well and the hotels were able to establish themselves quickly and successfully.