Location, location, location?

  • 04/24/2015
  • Created by Thomas Wührer
Hotelinvest Lage

With real estate investments in general and hotels in particular, the saying "location, location, location" appears as a standard of assessement for quality over and over again. However, how so often: If it sounds easy, it mostly does not correspond to the reality. At hotels as an investment, the judgement depends on the expectations of the investor. And they can show - according to the investor (institutional investor like assurances or funds, family office, private investor) clear differences. In addition, some questions like the following are important to answer honestly:

Criteria for the choice of hotel real estate.

With real estate investments in general and hotels in particular, the saying "location, location, location" appears as a standard of assessement for quality over and over again. However, how so often: If it sounds easy, it mostly does not correspond to the reality. At hotels as an investment, the judgement depends on the expectations of the investor. And they can show - according to the  investor (institutional investor like assurances or funds, family office, private investor) clear differences. In addition, some questions like the following are important to answer honestly:

  • Which investment horizon do I have?
  • What is important to me: Value increase, yield or protection of the investment for generations?
  • Beside rational arguments of classical, do due-dilligence and emotional factors play a role?

Systematic Due Dilligence according to individual investment criteria

If one has weighted the put on-criteria which arise from these questions and one derives a sort of searching profile, it comes to the judgement of the offers. Here the location plays an important role, because it cannot be changed. But after all, the location is only one quality criterion of many which must be analysed again in many single factors.

Beside many other criteria, the following are important to judge the quality of hotel real estate:

 

  • Location (macro-situation, micro-situation, infrastructure on site)
  • Architecture
  • Structural fabric / Contemporary equipment
  • Competition / customer strategy
  • Concept
  • Image (reputation / sympathy)
  • juridical basic conditions
  • financial basic conditions

 

HOTELINVEST supports prospective customers in purposeful analysis, assessments, search and choice of attractive objectives, long before the actual transaction. Use our expert's assessment and experience. Please contact us, we will be glad to answer all your questions to start a long lasting cooperation!

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