HOTEL INVESTMENT STRATEGY
Rational industry approach
The management team capitalize on the Honotel Group’s longstanding expertise focused on hotel investment, value growth and operational management for hotel assets, looking to roll out its value chain within the hospitality industry.
KEY DRIVERS FOR VALUE CREATION
Extremely selective, the investment management company Hôtel Investissement Capital chooses its targets based on their intrinsic value. It focuses on off-market transactions, through unit acquisitions:
- Premises + business, making it possible to balance value growth between the real estate asset and operational cash flow,
- Hotels or any other type of short and medium-stay hospitality accommodation with strong potential (hostels, apart-hotels, etc.),
- Most vibrant tourist and business hubs and cities, primarily in France.
Hôtel Investissement Capital focuses on off-market hotel investment transactions.
Thanks to the strong partnerships established with leading banks and its financial engineering expertise, the investment management company optimizes its investments’ leverage through long-term debt with realistic business plans and strict respect for budgets, particularly for repositioning work.
The strategy to create value for assets is guided by the know-how of the Honotel Développement and Honotel Asset Management teams for repositioning hotels, thanks to a scalable offer aligned with new consumer expectations and new urban lifestyles. This offer is currently based around:
- Hybrid hotels
- Smart hotels
- Business resorts
- Boutique hotels
When relevant, the investment management company has full discretion to identify the best buyer and the best exit option (unit, block or entire portfolio sale) for each hotel.
Repositioning hotel assets
From Best Western Montmartre Sacré-Coeur to The Playce Hotel
After a €2 million refurbishment lasting one year, without closure, the anonymous tourist hotel has been transformed into a new kind of urban haven: a fun and vibrant breath of fresh air and a goto destination for tourists or business travelers:
- Creation of 105 sq. m of additional guest areas thanks to the renovation of part of the ground floor,
- Development of a new corporate and leisure offer: co-working space, meeting room, bar and snacks, events.
Investing in a hotel investment fund involves a significant level of risk and should only be considered by Investors who have sufficient financial resources to allow them to accept this risk and who do not have any immediate need to liquidate their investment or obtain the reimbursement of the paid-up amount of their commitment.
Changes to the legal, tax or regulatory conditions may be made during the life of a hotel investment fund and could adversely affect its performance or the performance of its investments.
No guarantee can be given that a hotel investment fund’s target returns will be achieved.
Past performance by similar investments is not necessarily indicative of future performance for a fund’s investments.
Any investment in a private equity fund is subject to risks, including but not limited to: risk of capital loss; risk of profitability being lower than the target probability; liquidity risk (the private equity fund’s units will be locked in for the duration of the fund); market risk (the resale of the private equity fund’s assets is subject to real estate and hotel market contingencies); operational risk (compliance, management, work, etc.).