Investment
Advisory
The question first, the property second. Sarego Group advises buyers and capital providers on hotel investments in the German-speaking countries, the Alps, the Mediterranean and the Adriatic, from acquisition strategy to commercial due diligence. Knowing what you are looking for means fewer viewings and faster decisions.
What this is about: Service 02
The expensive mistakes rarely arise over price, they arise with the acquisition profile.
An acquisition profile that permits everything leads to endless viewings and, in the end, to a property nobody can explain. So we first set down in writing what you are actually looking for, that is region, operating structure, number of rooms, capital committed, holding period and the role you want to play in the operation. The search begins only after that. A profile that allows a refusal is worth more than one that keeps everything open.
The second question is the yield logic. Under a lease the operator pays a fixed sum; the owner carries less risk and earns less when the property runs well. Under a management agreement an operator runs the property for the owner's account against a fee: the upside rises, the result fluctuates. Which of the two suits your capital determines every further figure. Between them sits the hybrid of minimum and turnover rent. It spreads the risk but demands reporting that both sides accept.
How we proceed: 01 bis 04
Acquisition profile
Region, operating structure, volume and holding period are set down. The profile is the filter for everything that follows.
Market access
Matching against our portfolio and the partner network. You see only assets that fit the profile.
Commercial review
Turnover, GOP, that is the gross operating profit before lease, plus lease cover, meaning the ratio of result to lease, the deferred maintenance and the contracts. We test whether the seller's business plan carries. Conspicuous gaps between plan and past feed into the price negotiation.
Structuring
We settle asset or share deal, financing and operator commitment, each of them coordinated with your tax and legal advisers.
For whom: Client groups
Private investors, family offices, institutional buyers and operators that want to grow, especially in markets they do not watch daily. Some already have an asset in view and need only a second opinion on it.
- First-time investors examining hotels as an asset class.
- Holders cleaning up or extending a portfolio.
- Capital providers needing an independent second opinion on a deal.
Questions: Three questions
- What does a first assessment cost?
- Nothing. The first conversation and a rough assessment of an asset are part of our work and not a product. Fee or commission is agreed only once a mandate comes about, in writing and beforehand. What a mandate costs depends on scope and role and is settled before the first step of work.
- Do you replace tax and legal advice?
- No. We prepare the commercial side and name the points that need clarifying. The tax and legal assessment is made by your advisers; we work to them and hold the timetable. In cross-border structures we bring the advisers of both countries to the table early.
- Do you advise even if I do not buy through you?
- Yes. Advisory and brokerage are separate mandates. If you want an asset from another source reviewed, we tell you what we make of it, and where we are not the right address.
