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).