Schroder Real Estate Hotels partners with a large set of recurring investors enabling us to undertake a range of operations (management contract, lease, management lease, directly-operated hotels) with different risk/reward profiles. We structure club deals and joint ventures with co-investors from family offices, private equity funds and a range of institutional investors. How we partner with different investor types is dependent on the risk/reward profile required.
Lower risk investments are usually undertaken with family offices or institutional investors
Higher risk / return acquisitions or turnaround investments are more likely to be undertaken with private equity firms
Mature and low volatility operations are usually paired with institutional investors
Lease and/or management contract monitoring, especially during the renewal and capital expenditure (capex) investment phases (relationship with tenants)
Monitoring and enforcement of third parties’ contracts obligations
Critical appraisal of capex program requirements
Technical audits and capex budget follow up
Attendance of co-ownership meetings
Conversion of commercial real estate to optimise rental value.
Regular interactions with hotels’ operational teams to optimise;
Positioning and brand analysis. If required, critical rebranding assessment and process management
Active role in budget planning
Monthly operational and commercial reporting
Monitoring hotels’ corporate, administrative, financial, and legal matters.
Through a management contract, our own hotel management team is able to handle the following operational matters:
Definition of the commercial strategy and policy
Selection/negotiation of affiliation contracts
Optimisation of operational/commercial results
Optimisation of available space commercialization
Administration and accounting structure organization
Annual budget planning and monitoring through monthly reporting to shareholders
Management of all social aspects (hiring, CHSCT, works council)
Management of legal/contractual matters (suppliers/corporate contracts reviewing)
Monitoring of technical/security issues (safety norms, capex budget)
Direct project management for refurbishment/extension work
Implementation of a dynamic marketing/commercial digital policy.