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Introduction European Hotel Capital B.V. is a closed end private equity fund that specialises in leveraged buy-outs of mature hotel operations, including their real estate. The fund is initiated and managed by seasoned hotel entrepreneurs and investors and is supported by HVS International, the leading European hotel investment services and brokerage company. In the next decade a large number of family owned, mostly unbranded hotels will be available for acquisition in Europe. European Hotel Capital acquires these mid-size, mid-level, inner city hotels from their family owner/ operator. In a 5 years program, European Hotel Capital optimises the operation and upgrades the real estate, in order to substantially increase the company's cash flow and to improve its strategic position. After this program, European Hotel Capital divests its portfolio of hotels, whether as a whole or in parts, to international hotel operators, hotel brands and real estate investors. Mid-size and large international investment and hotel management companies show a strong trend towards consolidation. They use acquisition of portfolios and single asset hotels as their main growth driver. The prime acquisition targets are groups of well managed hotels that are optimised to be a ready fit for their real estate, management or brand portfolio. Therefore, the bulk of the large family business supply, in their current single asset, semi-professional and sub-optimal situation, are unlikely acquisition targets for professional buyers. The gap between hotel project supply from family owners and hotel acquisition demand from strategic buyers, together with the experience of the fund management in converting sub-optimal hotels into well managed and strategically interesting hotels, creates an opportunity and a clear advantage for the fund in the hotel investment market. European Hotel Capital invites professional investors to participate in the fund. An information memorandum is available through this site under ‘Further information’. |
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