{"id":405,"date":"2018-07-13T12:52:25","date_gmt":"2018-07-13T12:52:25","guid":{"rendered":"http:\/\/www.hotel-seeker.it\/?page_id=405"},"modified":"2023-08-21T10:39:06","modified_gmt":"2023-08-21T10:39:06","slug":"hotel-investment-sales","status":"publish","type":"page","link":"https:\/\/www.hotelseeker.it\/en\/hotel-investment-sales\/","title":{"rendered":"Hotel Investment Sales"},"content":{"rendered":"

Hotel<\/strong>,\u00a0hospitality<\/strong>\u00a0and\u00a0tourist\u00a0<\/strong>investment\u00a0<\/strong>sales<\/strong>\u00a0are experiencing remarkable development even thanks to the presence of many international operators and investors who see Italy as a key tourist destination.<\/p>\n

The\u00a0total number of hotel properties<\/strong>\u00a0in Italy is very high and presupposes concentrations especially for those tourist destinations that attract foreign flows. In fact, more effective accommodation units with a high number of rooms are arising against many small structures.<\/p>\n

Sales<\/strong>\u00a0are therefore destined to increase, especially because many hotel entrepreneurs have to face agenerational change<\/strong>\u00a0in their own companies and many structures require relevant\u00a0investments for the renovation<\/strong>\u00a0of the building and installations.<\/p>\n

The\u00a0sales process<\/strong>\u00a0can be directly adopted by the owner or supported by\u00a0companies and\u00a0real estate advisors\u00a0<\/strong>that manage the whole hotel\u00a0commercialization<\/strong>\u00a0process towards the market.<\/p>\n

The process often arises from the sellers\u2019 need to complete their investments, reduce the number of owned structures or\u00a0sell a property<\/strong>\u00a0which is no longer in line with the investors\u2019 needs.<\/p>\n

In all these cases, there are some\u00a0models<\/strong>\u00a0that can be adopted for an\u00a0effective commercialization<\/strong>.<\/p>\n

In fact, the\u00a0commercialization<\/strong>\u00a0process<\/strong>\u00a0is the following:<\/p>\n

    \n
  1. Preparation of an Investment Brochure, otherwise called\u00a0Information Memorandum<\/strong><\/a>, through which it is possible to gather and present features of the accommodation structure, sales objectives, owner\u2019s expectations towards the transfer and possibly indications of expected price (so called Asking Price<\/em>)<\/li>\n
  2. Preparation of a buyers\u2019 list (so called\u00a0Investor List<\/strong>) that contains all the potential subjects interested in acquiring the structure, considering the type of hotel product and the nature of investment.<\/li>\n
  3. Commercialization<\/strong>\u00a0of the investment opportunity through commercial actions addressed to the market of national and international hotel investors and operators. Such actions aim at communicating sales opportunities, how the sales transaction takes place and the property expectations according to the sale price<\/li>\n
  4. Arrangement of the opportunity Due Diligence<\/strong><\/a>, gathering and availability of technical, operative, accounting, economic and financial documents of the hotel structure and the company owner of the real estate<\/li>\n
  5. Negotiations<\/strong>\u00a0with investors and following preparation of a short list, namely a restricted list of buyers with which to maintain more advanced negotiations<\/li>\n
  6. Identification of the Sales\u00a0Term Sheet<\/strong>, through which the hotel owner wants the main contract terms in the sales agreement to be respected<\/li>\n
  7. Selection<\/strong>\u00a0of the most apt buyer to complete the sales: through such activity the most suitable subject to negotiate the term sheet is identified, entering a final phase of negotiation<\/li>\n
  8. Signature<\/strong>\u00a0of the\u00a0Term Sheet<\/strong>\u00a0and inclusion of the legal parties in the negotiation: in this last phase, their respective lawyers are included in order to draft the sales agreement and finalize the contractual relationship of hotel transfer.<\/li>\n<\/ol>\n

    The total\u00a0duration<\/strong>\u00a0of the process may vary from few months to even more than a year, according to the different parties\u2019 degree of involvement, the seller\u2019s and buyer\u2019s motivation and the conditions of financial markets.<\/p>\n

    Therefore, the process is composed of many iterative phases in which the investor or the owner make sure that the hotel is managed according to investment expectations. This generally implies the evaluation of market conditions, the need to renovate, refinance the property or propose its sale.<\/p>\n

    In such case, the owner can decide to conclude the investment and\u00a0sell the asset<\/strong>. Even if this has to be included in the general process of hotel asset management, the decision is often affected by contingent circumstances that arise at a certain moment of the\u00a0hotel life cycle<\/strong>\u00a0and different market conditions. The most sophisticated investors always evaluate the possibility of maintaining or selling their own assets, estimating future cash flows and related risks, according to different alternative investment opportunities.<\/p>\n

    Generally, the sales\u00a0brokerage<\/strong>\u00a0service offered by\u00a0brokerage<\/strong>\u00a0and\u00a0advisory companies<\/strong>\u00a0is paid with a variable remuneration depending on the price achieved at the end of the sale.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Hotel,\u00a0hospitality\u00a0and\u00a0tourist\u00a0investment\u00a0sales\u00a0are experiencing remarkable development even thanks to the presence of many international operators and investors who see Italy as a key tourist destination. The\u00a0total number of hotel properties\u00a0in Italy is very high and presupposes concentrations especially for those tourist destinations that attract foreign flows. In fact, more effective accommodation units with a high number of […]<\/p>\n","protected":false},"author":2,"featured_media":24977,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-405","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/pages\/405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/comments?post=405"}],"version-history":[{"count":14,"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/pages\/405\/revisions"}],"predecessor-version":[{"id":994,"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/pages\/405\/revisions\/994"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/media\/24977"}],"wp:attachment":[{"href":"https:\/\/www.hotelseeker.it\/en\/wp-json\/wp\/v2\/media?parent=405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}