Hotel Real Estate
Location: Germany and Austria A and B cities. European capital cities. CE&E Prague, Warsaw, Budapest. Cities with more than one Mio. overnight stays p. a.
Volume: approx. EUR 10 - 150 million, portfolios separately
Size: from approx. 100 rooms
Risk Profile: Core, Core +, Value add, Development
Classification: 2 - 4 star City hotels
Existing hotels, developments and hotel properties with optimization needs. Hotel properties with or without operator, necessary demolition or conversion measures, short-term, medium-term lease periods (1-10 years) and 20-year leases, operator change necessary, problem hotel properties etc.
Underperforming hotel real estate
- As operator properties with high capital and human resources requirements, hotels are more often dependent on outside financing and thus particularly vulnerable to crises.
- High fixed operating costs, particularly staff costs, make the industry vulnerable to problems that are often triggered by a misinterpretation of increased competitive pressure, inadequate marketing, masked by inadequate or inefficient controlling, and often accelerated by false, late or non-marketable investments.
- Other problems often have affected hotel properties in the form of defective or outdated building services. Against the background of rising energy prices, this leads to high operating costs and additional repair and maintenance costs.
- Also, fire safety deficiencies involve the risk of incurring high costs in one fell swoop if they become acute or require authorities to remedy the deficiencies.
- Bringing a troubled hotel back to sustainable economic stability is a complex process which, in addition to special know-how, requires sufficient liquidity. This is what ASCARD specializes in.
- ASCARD aims at such investments in problem - hotel real estate. In addition to core investments, below-average hotel properties in strategic locations that can be renovated, restructured or repositioned are also being examined.
- With operators and hotel owners lacking sufficient liquidity, individual problem-solving options and partnerships can be developed.