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Investment criteria
European Hotel
Capital has set strict criteria for the cities and hotels it invests
in. The primary focus will be on major cities in the Netherlands, Belgium, Germany
and France. Certain cities in Italy, Spain and Portugal are also considered as
investment locations. The table below lists the city criteria the fund
employs
for its investment decisions.
City criteria |
- Attractiveness as tourist area
- Degree of business activity
- Convention frequency
- Infrastructure of city and region
- Presence of (international) airport
- Hotel supply developments
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- RevPAR expectations
- Span of region
- Composition of population
- Presence of universities, hospitals
etc.
- Economic developments
- Political stability
- Euro currency
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Within the cities that meet the criteria above, European Hotel Capital
searches for mid-class, preferably unbranded
family hotels, which have a lot of value potential that can be unlocked
through a feasible
turnaround, refurbishment and/or expansion strategy. The hotel criteria
of the fund are summarised in the table below.
| Hotel criteria |
- Located in city centre
- 80 - 200 rooms
- Mid-class segment (3-4 stars in the Benelux classification)
- Refurbishment / extension opportunity
- Healthy business mix
- Unbranded and branded
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- Good exit prospects
- Feasible value creation strategy
- Run by family / private party
- Existing, going concern hotel
- Can be run by local operator
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The investment criteria will be used as a guideline for the fund
management in the selection and assessment of investments and are
designed to select growth opportunities with limited downside risk
and good exit prospects and as a direction for the investment committee
to advise on proposals. |
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