Hotel and real estate investment requires a thorough understanding of the basics of the property, location, market and operational dynamics.
In particular hotels and resorts, as 'live' trading businesses are subject to the fluctuations of the economy, tourism patterns and local market conditions, there is a genuine need to fully understand the DNA of the underlying business. To do so, the asset itself needs to be appraised but so too does the management strategy underpinning the business, the competitive positioning, the capital expenditure programme and the assets' likely future trading performance. This needs to be overlayed with the aspirations of the potential purchaser and their objectives. Independent specialist advice and input to interpret the data and its presentation are essential to a successful transaction.
Our Partners have been involved in a range of commercial due diligence exercises on behalf of investors working alongside legal and other technical disciplines on behalf of investors seeking to assess their planned purchase, both its potential upsides and downsides and what the business can realistically be expected to return during the period of lease/ownership.
The services carried out both on individual hotels, real estate assets and portfolios have included:
In summary, our partners have been involved with commercially focused input which has included working alongside complementary lawyers/financiers/valuers in: