London Hotel Acquisition Advisory

Project Type

Strategic Advisory

Country

UK

Case Study Title

Acquisition Advisory Services in relation to the Acquisition of a London Asset

The Client

A pan-European family office

Background

The client is building a portfolio of international hotels and had identified an asset in central London to acquire.

Client Need

HSP was engaged on a monthly retainer to provide advisory services to assist the client in the acquisition of the asset.

Scope of Work

HSP’s experienced acquisitions expert was engaged to undertake the following tasks :

• Recommended reputable advisors to the client to carry-out the tax and financial due diligence of the asset’s owning entity. Engage building surveyors to complete a comprehensive and technical due diligence of the asset including engaging an environmental consultant and a fire engineer;
• Liaised between the vendor and client on bid process requirements. Relay queries and information from Client and HSP to the vendor.
• Coordinated inputs, tasks and timetable of Client, Hotel Solutions Partnership and any other parties to be engaged in the bid process (such as financial advisor, tax advisor, lawyer etc.).
• Attended calls and meetings on behalf of Client and the advisory team to monitor progress and address outstanding issues.
• Identified a white-label operator to manage the asset post purchase
• Provided ad-hoc support needed in connection with dealing with the operator, raising finance and completing the due diligence.

What did Hotel Solutions Partnership achieve for the client?  

HSP handled every step of the acquisition process from organising the first site inspection with the Vendor to coordinating with all the advisors the drafting of all the transaction documentation.

HSP’s acquisitions expert set-up and participated in conference calls with the Vendor and the Client to iron commercial terms eliminating from time to time any risks that could derail the transaction.

We sourced and interacted with potential operators including setting-up site inspections receiving and reviewing management proposals to allow our Client to rapidly appoint the best suited management company.

As this engagement took place during the Covid 19 pandemic, we regularly liaised with the appointed operator to review and amend profit & loss forecasts and monitor STR trading data as the situation developed. We also interacted with leading industry valuers and funders to monitor the impact of the pandemic crisis on the valuation of hotel assets and we advised the client as the situation unfolded.