Amenities & Services
- JV / Equity Funding Required
- £3.5m per Hotel, up to £30m per annum
- 3-Year Equity or Rolling Investment
- Funds used to Purchase 3-star Hotels
- Refurbish & Upgrade to 4-star Standard
- All Hotels have Value Add Opportunities
- Highly Experienced Management Team
- Additional Bank Debt in Place
- Investment Repaid by Bank Re-finance
- 3-Year IRRs Circa 38%
The directors have decades of experience in the design and delivery of branded hotels, including their own hotel.
Management has impressive capability across operations, renovation, project management and hotel purchase/sale.
The investment strategy is to buy, refurb, upgrade and operate hotels in upmarket provincial locations such as Bath, Stratford, York and Cambridge.
These hotels are immediately deliverable and the firm has the capacity and experience to executive the purchase, refurb and operate.
The operational and investment period will be for 3 years, with the equity investor re-financed out via the high street banks (existing relationships with RBS, Coutts, NatWest, and a Credit Fund).
Current Funding Requirement & Proposed Structure
The proposed structure is as follows:
- 12% preferred return per annum, rolled up until exit
- 50% of Levered Free Cash Flow to be distributed as dividends from Year 2, counting towards the 12% annual preferred return
- Profit share at 50/50 with the management team once the preferred return has been paid
- There would be a zero dividend payment year 1, but accelerating from Year 2 onwards
- Funds can roll into other projects if suited
One page project IRR Summaries available.
Full, further information on the team and sites including forecasts and projections are also available, subject to a signed NDA.