Inverter hotelier profiles
Economic recovery and the growing confidence of international markets have shot up the hotel investment in Spain to â‚¬ 1.1 billion in 2014, according to published News HOSTELTUR tourism a report by JLL Hotels & Hospitality Group, with a very well defined investor profiles.
The past year has been one of the best in the last two decades for the hotel investments in Spain, according to suggest from the consultancy JLL Hotels & Hospitality Group, and everything seems to indicate that by 2015 these records will be repeated and even be overcome thanks to the profitability of the European fixed income and the abundant liquidity levels.
The hotel market welcomes four profiles of investment funds according to the risk they take and the profit seeking, according to detailed Ismael Clemente, director of Real Estate dictionary.
funds assume a minimal risk, with an expected return that ranges from 4% to 6% based on a constant flow of income, with a term of more than 10 years investment and leverage of 0% to 50%. The type of asset seeking are called “trophy” at locations ’prime’, preferably with long-term contracts and tenants with a good credit profile.
Funds Core Plus
The risk in this case is between minimum and moderate, with an expected return of 6% – 8% based on that same income stream steady but also with appreciation, for a period of investment of more than seven years and with a leverage of 25% – 50%. Look here for stable assets in locations ’prime’ or secondary, which generate a stable flow but that required certain reforms to maintain its category.
Modalities in Core and Core Plus are sovereign wealth funds and pension and insurance companies both listed as no quote, funds open and closed, the SOCIMI (anonymous societies as listed to of real estate investment), private investors and public entities.
Funds Value Added
The risk assumed is already moderately, but the planned profitability amounts to 12% – 16%, to be obtained from certain income stream, intensive management, and the revaluation of the asset. The term of the investment is located between seven and 10 years, with a leverage of between 60% and 75%.
These funds focus on assets with potential for improvement requiring a management enabled to maximize its value, whether through repositioning, reforms, rentals or deleveraging.
In this type of funds we are also with the pensions and insurance, the closed, the quoted companies and without quote and private investors.
With a high risk and an expected return higher than 18% based on the revaluation of the asset, since it does not require an initial revenue stream, the term of the investment has a leverage that varies between 80% and 90% and a maximum of five years. The most sought-after assets in this case have to do with development and promotion, the called ’distressed’ or assets of companies in difficulties that need repositioning, as well as the credits failed or ’ non-performing’.
Opportunistic funds include non-listed companies, pension funds, the so-called ’hedge funds’ or hedge funds and venture capital.
Types of inverter
Ismael Clemente also distinguishes four types of investor: the hotelier, real estate, the family office and circumstantial inverter, detailing the characteristics and preferences of each of them, as well as their differences.
, Inverter hotelier shows preferences for the finished product, especially high segment, analyzes international cycles and presents a relative ability to purchase and access to capital markets.
In the form of real estate investor differentiates between open-end funds, seeking liquidity cyclic, with statutory limitations and in reference to pricing; and the closed, which require an intermediate liquidity, performed an own analysis and have a development premium.
The family office, investment platforms dedicated entirely to the large estates, tend to be partners of susceptible, but stable relationship in the process of sophistication. show a lack of confidence in the own analysis or appraisal and opt for safe product. They present a relative purchasing power and reduced access to capital markets.
Finally circumstantial inverter is characterized by engaging in projects by geographical proximity or political influence, as it has happened with savings banks in recent years. His analysis of the situation tends to be fragile and its commitment, under certain circumstances, volatile.
This article has been published in the February issue of the revista Hosteltur and is available in the attached pdf.
profiles of inverter hotelier.
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