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).