Bespoke Investment Services
Funds
Management
HCP sources on and off-market opportunities across Australia, New Zealand and selected offshore locations to satisfy specific investor mandates.
Mandates might typically nominate criteria including but not limited to location, property size, market classification, min/max investment sum, availability of vacant possession, extent of value add and associated investment risk.
Managed funds may be for single assets or aggregated portfolios
Deal Sourcing
& Execution
Deal execution for hotels is more complex compared to deals for commercial property subject to a lease.
Understanding of key issues during the initial due diligence
- Opportunities and pitfalls of the hotel
business - Refurbishment requirement
Optimisation of the ownership structure is
- Trading trust provisions
- Implications of OpCo PropCo structure
- Optimising allocation of depreciation
Execution of investment strategy
- Most appropriate operator/ brand and suitable HMA terms
- Seamless, on budget and on time refurbishment
- Business repositioning
Asset
Management
HCP provides asset management services to hotel owners working cooperatively with the hotel manager to optimise return on investment.
This requires a constant focus on
- Ensuring room revenue is generated across a diverse range of sources
- Optimising revenue management as well as rooms division profit
- Managing cost control support by proprietary benchmarking models
- Ongoing talent review
- Understanding and addressing guest feedback
- Ensuring capital expenditure collectively meets guest expectations and owner returns
- Additional services can include debt management and liquidity management.
Debt &
Capital Finance
HCP facilitates acquisition finance and refinancing of maturing facilities.
The range of credit options includes
- Stretched senior finance for existing hotels or a senior bridging facility for recently completed hotels to allow time for trading to
ramp up to a stabilised level - Top-up or last-mile financings for incomplete projects
- Acquisition of distressed debt and implementation of an operational and capital restructuring program
To optimise the key metrics of any facility, HCP ensures
- The financier clearly understands the investment strategy and timetable for implementation including key milestones
- The capital expenditure requirement (if any) is rigorously tested