Purchasing Hotels and Restaurants for Self-Management

"'When purchasing or leasing a hotel /restaurant real estate to be ‘self-operated’, buyers, tenants and investors need a reliable, neutral partner and consultant to ensure a successful investment!"

Hotel and restaurant properties that are 'self-operated' can be separated into two categories. In the classic scenario the owners / tenants run the hotel themselves, bear the full risk and make all entrepreneurial decisions. In recent years hotel investors have increasingly consisted of buyers from all various kinds of economic sectors who manage the hotel themselves with their own team - with or without a managing director.

Owner-operating by knowledgeable buyers / tenants or career changers

In the first instance we have mostly experienced buyers / professional tenants with solid training and many years of practical experience in the area of leadership, management, marketing and selling hotel / restaurant real estate. These buyers often already own hotels and would like to expand. These interested parties know exactly what to expect and what to pay attention to when purchasing or leasing a property. Our hotel brokers prepare property information and documents etc., accordingly. If, however, the interested parties are not from the hotel or restaurant industry, the documents are prepared and presented in a different manner so they are clearly understandable. Career changers in particular will require a more detailed consultation so that they do not take on an inappropriate or inappropriately sized real estate.

Self-operation by mostly non-industry hotel investors

This does not generally refer to hotel investors who buy a hotel which is already under lease, but rather individuals who buy a hotel to run it with their own team. This not only drastically increases the yield, but also the risk levels involved, because they operate the hotel at their own expense. This clientele are mostly self-employed professionals (accountants, lawyers, financial advisors), or professionals from all kinds of sectors, industrial and family offices. These buyers tend to dispose of the necessary financial resources with no bank financing needed. The owners have no or little hotel or restaurant experience and, in addition to a decent profit, they even expect an increase in the value of the real estate. It goes without saying that this group of buyers need a very different kind of advice and support. Our specialist brokers and tourism consultants prepare the documents and information especially for this target group and take into account all the wishes and requirements of prospective buyers / hotel investors. These hotel buyers need special consulting, and intensive advice and support especially in the areas of personnel, controlling and benchmarks.

Purchase / lease and investment ASPI professional hotel brokers are the only option

It is highly recommended that both groups of prospective investors seek the assistance of an experienced hotel broker or hotel real estate agent who can offer them a very wide range of different hotels. Only they can offer you the ideal hotel based on the equity at your disposal and your preferences with regards to region, category, size, profitability and hotel type. They will present the advantages and disadvantages of each hotel in detail, provide accurate estimated forecasts and market opportunities of any hotel, as well as pointing out any difficulties which may arise in the operation or financing of the hotel. We help hotel buyers organise the financing of their investment and a team or a tenant to operate the hotel if necessary. Your hotel broker will also provide advice on lease and purchase contracts, as well as preparations for an acquisition. If so desired, they can also assist with the hand-over of the property itself.

Leasing and renting a hotel can also be combined with the purchase of that hotel. We can set up creative lease-purchase models whereby a large part of the current rent can be used as instalments towards the total purchase price. After a few years the tenants of the property then become the new hotel or restaurant owners.

Feel free to contact one of our expert ASP real estate brokers at any time with your wishes, ideas and requirements. Our specialists for hotel and restaurant properties will help you find your dream property combining enjoyment and success!

ASPI AG service package for the purchase, lease, investment of hotel and restaurant real estate:

ASP Real Estate Consulting

• Advice on purchase, lease or investment
• Selection by country and region
• Selection of the appropriate type of hotel / style of hotel
• Selection of size and category
• Selection for purchase price and yield expectations
• Advice on real estate orientation and future development opportunities
• Advice whether the requested purchase price or lease amount is appropriate; property appraisal
• Providing balance sheets / business assessments from the last periods, occupancy rates, renovation and restoration requirements, inventory and inventory lists, land registry excerpts, land and building plans, energy performance certificate, existing debts and liabilities, etc. and help with the interpretation of these documents
• Operational analysis
• Preparation of financial data
• Calculation of investment costs
• Preparation and presentation of the future development
• Benchmark analysis

ASP Strategic Consulting

• Consulting in all investment decisions
• Accompanying and advising all purchase aspects
• Development and implementation of negotiation strategies
• Structuring transaction processes
• Consultation and negotiating the optimal form of financing
• Advice on the optimal contract structure
• Negotiation of purchase contracts and lease agreements
• Preparation and completion of contracts
• Appraisals using international standards
• Takeover preparations and acquisition work
• Preparing exit strategies
• Installation of hotel software, hotel controlling, personnel controlling, etc.