Sector · Real Estate and Hospitality
Real estate and hospitality investment: capital for hotels, operational and development real estate
Real estate and hospitality investors look for a clear business plan, a credible operator and a capital structure that works under a downside case. We help sponsors and developers raising £10m and above present development and operational real estate to the investors and lenders who fund it.
How investors see it
Real Estate and Hospitality: where capital comes from, and what it needs.
Hotels and operational real estate combine property and operating business risk. Investors assess the asset, the location, the operator, and the trading performance or the evidence for it. Development schemes add planning, construction and lease up or ramp up risk.
Capital in this sector is usually layered: senior debt from banks or debt funds, mezzanine or preferred equity, and sponsor and investor equity. The structure has to work for each layer, and investors will test it.
Who we work with
- Hotel and hospitality developers and owners
- Sponsors of mixed use and operational real estate
- Owners seeking recapitalisation or refinancing
- Operators seeking capital for portfolio growth
Investor criteria
What investors check before they invest
The Investor Readiness Review tests each of these against your materials before an investor does.
| What investors check | What they expect to see |
|---|---|
| Location and asset | Site, specification, condition and competitive set. |
| Operator | Brand, management agreement or lease terms, and the operator's track record. |
| Trading or market evidence | Historic trading, or a market study supporting occupancy and rate assumptions. |
| Planning and construction | Consent, cost plan, contractor and programme for development schemes. |
| Capital structure | Debt terms, equity requirement and how each layer is repaid. |
| Exit | Hold period, refinancing assumptions or sale strategy. |
Capital providers
Who invests
Real estate private equity
Development and value add schemes
Debt funds and banks
Senior and development lending
Family offices
Direct equity, often with long hold periods
Hotel owners and operators
Strategic investment and joint ventures
Mezzanine and preferred equity providers
Gap funding within the capital stack
Common issues
Where raises stall
Operator not committed
A brand or operator described as interested but not signed.
Ramp up assumptions aggressive
Occupancy and rate assumptions above the market evidence.
Capital stack incomplete
Equity gap not identified or not credibly filled.
Cost plan out of date
Construction costs that do not reflect current pricing.
FAQ
Real Estate and Hospitality: questions
Who invests in hotel developments?
What do hotel investors look for?
Do you work on residential development?
Find out what an investor will see before approaching the market.
The Investor Readiness Review is a fixed fee assessment of your opportunity, written from the investor side of the table. You receive a scored report, the issues most likely to stop an investor, and the order in which to address them.