Schroder Real Estate Hotels is an active asset manager and aims to create value through the acquisition, hold and exit process.
Assets are sourced both on-market and off-market via Schroder Real Estate Hotel’s extensive network of contacts. The team’s experience and reputation in the hotel investment sector means it is in direct contact with the main brokers as well as hotel owners. This enables the investment team to receive a considerable number of all investment opportunities across major European cities.
Schroder Real Estate Hotel has dedicated teams across three European offices providing local knowledge and contacts within the hotel market. Schroder Real Estate Hotels is supported by the wider Schroder Private Asset teams across ten European offices. This strong platform is essential in securing deal flow.
Schroder Real Estate Hotels has the capability to structure investment opportunities for its partners, ensuring robust due diligence and governance throughout the process as well as arranging competitive asset financing.
Schroder Real Estate Hotels has a detailed understanding of the financing requirements for hotel assets in different jurisdictions as well as a strong network of lenders across Europe, with the capability to source and arrange debt or interest and currency hedging as well as the ongoing management of the facility.
Schroder Real Estate Hotel’s active management strategy aims to improve the revenue and the profitability of each hotel asset through:
(1) financial and operational improvements;
(2) targeted asset management;
(3) optimisation of the day-to-day hotel operations; and,
(4) relationship management with brands and operators.
Asset management initiatives for each hotel are monitored through asset business plans. Each asset business plan includes a detailed analysis of the asset’s strengths and weaknesses, projected returns, and milestones for delivering future performance. These are regularly reviewed to drive asset value and total returns through the investment cycle.
Exit opportunities are regularly monitored in line with the progress of each asset’s business plan as well as its valuation.
Schroder Real Estate Hotels has extensive experience of preparing assets for disposal, including the execution of the documentation that is required at exit and the identification of potential purchasers for assets.