Acquisition & Investment Services

Are you a hotel company wishing to consolidate your market position or expand into new markets, or a private equity firm looking to invest where you can maximize your returns?

In most parts of the globe today, hotels and resorts offer one of the most exciting and investment opportunities. Whether you are a hotel company wishing to consolidate your market position or expand into new markets, or a private equity firm looking to invest where you can maximize your returns, Reka Hospitality Venture’s Acquisition & Investment Services can help you identify the most promising hotel assets and investment destinations.

Due Diligence to Support Transactions

The acquisition and disposal of a hotel is more than a one-dimensional transaction in real-estate, with due diligence being a very important part of the process. Hotels are dynamic going concerns, often with varied and complex operations, and the industry in which they carry on their business is highly cyclical.

Many transactions that look great on paper don’t turn out so well. A rigorous, objective exercise in due diligence should help you see through the “window dressing” and enhance your understanding of the target’s business. This gives you the option of walking away at an early stage and saving money, or of negotiating and structuring a deal that will make the transaction more likely to achieve its objectives.

An acquirer’s first line of defence is quality due diligence in the early stages of a contract negotiation, alongside the process of working through representations and warranties. Indemnification, on the other hand, should always be the last line of defence.

Our multi-faceted team of sector specialists is uniquely positioned to act as a partner in your due diligence process. We offer a bespoke and value-adding approach that looks beyond the Investment Memorandum and generic assessment to uncover the unavailable and hidden information. This allows you to make an effective evaluation of the deal, to ensure that it resonates with your long-term goals and your strategic plan.

Whether buying or selling, our team can help you better understand the relevant issues, as well as help you to develop your vision for the asset. This will allow you to maximise the transaction’s value, drawing on the team’s many and varied industry experiences, especially our background in evaluating and developing turnaround plans for distressed hotels and resorts after assets are acquired.

Our support advice covers key areas, such as the financial, legal, labour, tax, IT, property, operational and market situation of the hotel, resort or group.

Identification of Acquisition & Development Opportunities

We can source a wide variety of assets such as operating city-centre hotels, serviced apartments, development opportunities as well as hotel portfolios and mixed-use developments across the World.

Through our extensive network and experience in the industry, our team, identifies the best investment opportunities available both on the market as well as off market in line with our clients’ investment and expansion criteria. We make sure all assets that we source are deliverable, and can carry out due diligence to help uncover any potential issues with the asset.

Additional services available to our clients include:

• Operator search
• Concept Development
• Brand development
• Feasibility studies on target assets identified
• Desktop valuation
• Internal support in negotiation
• Due diligence
• Complex finance options
• Advice on contacts

Acquisition Management and Management of Development Opportunities

Reka Hospitality Venture’s can support on the whole area of the acquisition management process. We’ll support you in assembling the right team of legal, tax, surveying/valuation and operational professionals, and we’ll stay with you all the way through the acquisition management process. The team will carry out initial strategic planning beginning with understanding your investment criteria, desired markets and ideal targets. We will then research and vet appropriate investment opportunities and inform you when an asset meets your requirements. Once you’ve made the decision to purchase, the team will support you through due diligence, financing, contract negotiations and closing, as well as post-closing adjustments.

i) Acquisition Management

By involving the Reka Hospitality Venture’s team in the early planning stages of an acquisition management project, we’ll be able to seamlessly guide and support the transaction, providing expertise as-and-when needed. Post-acquisition, we can handle the intricate planning and execution of the operations take-over.

ii) Management of Development Opportunities

If you have a development project, our team will support you as prospective investor on site constraints, and whether development costs and the development timetable are realistic.

As with the acquisition management process, the involvement of Reka Hospitality Venture’s team early in the development process enables them to provide ongoing support through the pre-opening and operational planning.

In both scenarios, our consultants will recommend the level of investment and financing structure most appropriate for you, highlighting opportunities for making a return on your investment.

iii) Owner Representation

Reka Hospitality Venture can provide pragmatic advice to hotel and resort owners on operator oversight. This includes financial and operational performance evaluation on a monthly, quarterly and annual basis.

Our Owner’s Representatives challenge and oversee the Management Company ‘s annual budgeting process to ensure that the interests of the Owner and Shareholders are protected.

We monitor the competitive environment and keep a 360-degree view of the hotel’s ability to trade at the top of its competitive set.  We believe that periodic monitoring of the physical state of the asset is important and having a rolling asset management programme will preserve long term value.