Looking For Hotel Sellers:
Client 1
Looking to buy 3 star properties that they can rebrand and refurbish. They will only consider flag free as they are an operator They will also look at office conversion and other property that has permissions to change to hotels. They have 3 brands: hotels, serviced accommodation Pads and airport hotels so they will also look at conversions and opportunities for serviced apartments and airport hotels.
In terms of areas they are looking at major European hub cities: London, Barcelona, Paris, Madrid, Lisbon, Paris will consider others.
Prices vary depending on locations, but they are looking for business districts for the hotels but will look at secondary locations in major hub cities.
Client 2
A fund that owns and operates a budget hotel chain in Germany, they are a budget hotel operator and are looking for all major German cities but ideally in the top 6. They again will only look at flag free properties, they love to buy portfolios. They are open on price again and will look at 80 rooms plus but it would be for budget hotels.
Client 3
They will look at both city centre and tourist hotels across Western Europe. They will operate or buy with operators in place if the yields are strong enough.
They look for circa 6.5-7% based on 2019 income for both leased and flag free, they will not really look at anything without being able to confirm the financials and need to know:
Numbers of rooms
Revenue
EBITDA
GOP
Yield 6.5-7%
Client 4
Looking for anywhere in UK, preferably small and distressed assets that can potentially be converted into apartments.
Client 5
Looking for distressed asset preferably in 5 star category in any of the major cities of Europe or US. No Eastern Europe or Baltic states or remote/touristy locations.
Market Updates:
Harilela Hotels CEO sees industry bouncing back in 2022
HotStats: August Proves Positive Month for Regions Outside U.S.
Why new hotels are opening amid the pandemic
Hopeful Hoteliers: 35 Exciting New Hotel Openings Around The World For Fall 2020
Trump Hotel in Vancouver closes as company files for bankruptcy
The deal, expected to close in the first quarter of 2021, includes 197 hotel properties with 22,676 rooms across the country.
Colony sells most of its hotel biz to Highgate in $2.8B deal
Tom Barrack’s firm had defaulted on $3.2B in hotel, health care mortgages earlier this year
Representatives of the Hilton Times Square, the Omni Berkshire Place and the Courtyard by Marriott hotels on 35th Street and Fifth Avenue, all of which are closing permanently, did not respond to requests for comment.
Pandemic Puts N.Y.C. Hotels on the Brink: ‘A Complete Washout’
Several big hotels in the city have announced that they are closed for good, and some experts say that more shutdowns are coming.
Operator of Martinique Hotel in Manhattan files for bankruptcy
World’s Five Largest Hotel Chains Lost Over $25 Billion: Is The Hotel Industry On The Brink Of Collapse?
‘Tsunami’ of hotel closures is coming, experts warn
Marriott falls behind on payments for 122 hotels, property owner says
Major Sydney five-star hotel for sale through JLL Hotels and Hospitality Group
Chinese investment firm selling stake in portfolio of seven Manhattan hotels
A Chinese investment firm is selling a preferred equity stake in a seven-hotel portfolio in Manhattan.
Cindat USA LLC of China bought the portfolio for $571.4 million in 2016 in a joint venture with hotel operator Hersha Hospitality Trust (NYSE: HT). Cindat is the senior preferred joint-venture partner with a 70% ownership stake, while Hersha holds 30%.
JLL Hotels & Hospitality is marketing the stake in the portfolio, which is non-union.
The portfolio includes 1,087 rooms across seven hotels: the Candlewood Suites, Hampton Inn and Holiday Inn Express in Times Square; the Hampton Inn in Chelsea; the Hampton Inn near Madison Square Garden; and the Holiday Inn Express and Holiday Inn near Wall Street.
Please contact us via email on the blog under "Contact Us" on the top right if you have any enquiries for buy/sale.
Thank you for review. It seems that small resorts with <50 rooms withstand this time better. No guests only means that for a while it would be necessary to close down and let the staff to survive on their own.
ReplyDeleteHello Mr Max,
DeleteThank you very much for your comment.
It depends on several variables on who can hold longer: debt, location, last few years of performance, cash on balance sheet, whether refurbishment was done in the last few years or not, Govt support and when the domestic tourism may reopen at a particular location.
We are beginning to see distress as well as closures pretty much all over.
Smaller ones have an advantage as well disadvantage depending on the variables above.
Let us hope and pray that things improve fast because hotels are literally closing on a daily basis and only the most premium or well located assets may find a suitable buyer at a reasonable price.
Thank you and best wishes,
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ReplyDelete