CONCEPT overview


  PURPOSE  
     
  • Purchase of Tourism Projects in Europe, especially in Germany, Austria und Switzerland and Mediterranean region especially in countries like Italy, Egypt, Spain, Tunisia, Greece, Turkey and Morocco
  • Purchase of approx. 35 to 40 assets with an average price of € 12.5 million to € 15 million
  • Objects of purchase are particularly distressed loans and distressed properties
  • Purchase of operator free existing properties, if necessary also uncompleted objects
  PARAMETER  
     
  • Planned initial return: 7% (gross p.a.)
  • Planned target return: Up to 15% (gross p.a.)
  • Investment volume: Total investment up to € 500 million
  PARTNERSHIP  

WITH EXPERIENCED TOURISM SPECIALISTS

  • Access to hotel properties and other tourist facilities
  • Extensive expertise in hotel and tourism (hotel conception, operational management, asset management, administration, consulting, etc.)
  • Many years of experience in the hotel industry, tourism, and gastronomy

Investment with appreciation potential


  • Purchase of properties based on the current EBITDA, which is usually significantly below the real value
  • Purchase of properties are exclusively equity financed without external borrowing
  • The valuation of properties is based on feasibility studies by a management consulting company in the investment company’s sphere
  • Increasing value by optimization of business operations (quality optimization) and its marketing (quantity optimization) by a management company from the network of the investment company
  • A stabilization of the political situation will lead to a rebound in tourism in these regions
  • On the assumption that the tourism in Mena and  Mediterranean region recovers in the medium term, reselling of properties will be possible at a highervalue than the purchasing price

RISKS


  • The performance of some of the purchased properties depending on the political stabilization in the region and the associated resurgence of tourism
  • Demand for tourism properties generally depends on the location (economy,culture, tourism)
  • Impossibility of the optimization of the business operation and its marketing by the management company due to these factors which cannot beinfluenced