Experienced investment process,
source of value creation
With its long-term structural growth, the hospitality sector is a very popular asset class for investors looking to optimize the risk-return ratio on their portfolios. However, this sector also has various sensitivities in the short term – economic environment, political crisis, security risk, etc. – and to ensure that investments succeed, it is vital to start off with an acquisition and structuring process that is built around advanced expertise and a rigorous methodology.
The driving force behind the success of more than 70 private equity deals, Honotel Développement shares its value creation strategy with its partners on club deal, management lease contract or UCI operations.
Strong track record
Value creation model built around
a rational industry approach
Stringent selection based on intrinsic value
With its extremely selective approach, the Honotel Group has always chosen its targets based on their intrinsic value from among 3 and 4-star hotels with strong potential in France’s most vibrant cities, focusing on off-market acquisitions.
The success of its investments is built around its capacity for innovation in terms of financial engineering, its strong banking partnerships and its construction of realistic business plans.
Honotel Développement shares this strategy – and its outstanding track record – with its fund manager and institutional investor partners.
Our hospitality investment strategy in 9 points
- Premises + business / business only
- Selection based on intrinsic value
- Off-market acquisitions
- Strong banking partnerships
- Realistic business plans
- Financial leverage optimized through long-term debt
- Bespoke asset management program within a strict budget framework
- Operational management combining commercial development and cost optimization
- Creation of various exit opportunities.
Structuring bespoke club deals
Since its launch in 2000, the Honotel Group has offered its partners opportunities to be part of roundtables alongside it to acquire hotel assets through dedicated vehicles, with borrowings to cover any additional financing needs.
By combining its hospitality industry expertise and its financial engineering know-how, Honotel Développement is able to effectively structure all aspects of club deals to ensure a perfect fit with the maturity and performance goals of its various partners.
Quality Suites Bercy Bibliothèque (Paris’ 13th arrondissement)
Setting up operations with management lease contracts
For institutional investors looking to transfer responsibility for their assets’ operations by leasing their business, Honotel Développement is able to structure investment operations under management lease contracts. This type of structure frees investors up from any operational and asset management constraints, while securing long-term yields for them.
Hôtel Joséphine (Paris’ 9th arrondissement)
First hospitality fund closed in November 2016
Created in 2015, the Hôtel Investissement Capital investment management company, authorized by the French Financial Markets Authority (AMF) under number GP-15000008, launched its first fund in 2016.
Hôtel Patrimoine has private equity fund status and is a closed fund, with investments reserved exclusively for professional investors. It received €38m from investors looking to benefit from the hospitality industry’s dynamic development within an UCI.
Best Western Hôtel de l’Europe (Strasbourg – sold in 2017)