Hotels
We continuously seek new hotel investment opportunities for our clients, based on the following investment criteria:
- Countries
- EU Countries, but with a clear focus on NL & DE;
- Euro denominated countries.
- Investment typology
- Focussing on Core / Core+ investments in prime- and strong secondary cities;
- Main focus lies on *** and **** star hotels, targeting both leisure and/or business travellers;
- City hotels.
- Exposure
- Per asset, minimum of 70% income from hotel activities.
- Return Profile
- NIY (NOI / total investment) of at least 4,25%.
- Location
- Clear assignable drivers for the hotel type / brand;
- Clear assignable added value of the hotel to the micro location;
- Good accessibility by either car / public transport and ample parking for the location.
- Tenant
- Financially sound tenant (market standard or better margins and ratio’s);
- Track record in successful managing hotels .
- Lease
- Minimum of 10-year WALT (or shorter in exceptional situations);
- Market practice or better guarantees (bank, mother company, Pledge on FF&E and operational step-in rights);
- Double or triple net leases;
- Variable components do not account for more than 20% and are valued different;
- Rent level per room within market standards.
- Operation
- Market level or lower ADR and occupancy rates;
- Margins on the operation within market standards;
- Rent cover of higher than 1,25x on EBITDAR;
- Sound operational insurance.
- Brand
- Clear added value of the brand to the location, preferably a chain.
- Volume
- € 15mio – € 100mio per asset;
- Liquidity determined per location.
- Asset
- Good technical quality;
- Labels are a plus (BREEAM, LEEDS, WELL).