Seeking a Co-Investor for the Acquisition of a Boutique Hotel (Asset Deal)
Company Description
We are seeking a financially sound majority co-investor for the acquisition of an attractive boutique hotel in downtown Frankfurt.
The asset is currently undergoing due diligence.
The transaction is deliberately structured to be investor-friendly:
• An ongoing 5% p.a. preferred distribution that takes priority over the sponsor (us)
• Full capital priority upon exit (capital protection layer)
• Participation in the asset’s appreciation—without additional performance carry
• Clearly defined exit mechanism (for flexibility in the event of liquidity needs or to capitalize on market opportunities)
• Closing only upon execution of a legally binding lease agreement with a minimum term of 5 years (cash flow hedge)
Indicative conservative ranges of target returns from an investor’s perspective (projected over an 8-year holding period):
• Current cash-on-cash: 5.0–8.3% p.a.
• MOIC: 1.4x–2.3x
• IRR: 6.5–14.2% p.a.
We are seeking an equity commitment of EUR 1.0 million (effective drawdown of approximately EUR 900k as a one-time payment upon closing) with a term of approximately 8 years.
A professional LBO structure with attractive financing will leverage the return on invested equity.
Industry sector
Services