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Hotel Investment Advisory

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Abstract image representing a seamless mergers and acquisitions in hospitality industry transaction.

De-Risking Capital Allocation and Growth

Navigating the complexities of hospitality finance, from capital structuring to acquisition due diligence, demands specialized expertise. Without expert guidance, investment decisions—particularly large-scale acquisitions or divestments—can lead to significant erosion of shareholder value. Our hotel investment advisory service provides the precision and foresight needed to achieve superior returns. We act as your trusted hotel investment advisors, delivering rigorous financial analysis, strategic transaction support, and expert guidance on capital allocation across your portfolio and growth initiatives.

Visualizing multiple properties for comprehensive hotel portfolio management.

Our Consulting Approach

1. Investment Thesis Definition
2. Rigorous Financial Due Diligence
3. Transaction Structuring and Execution
4. Portfolio Management and Exit Strategy

Results:

Superior Deal Negotiation: Clients secure better pricing and more favorable terms on both acquisitions and divestments due to our expert financial modeling and leverage.

Risk-Adjusted Growth: We identify and mitigate hidden operation

Maximized Exit Value: Strategic planning ensures assets are at peak performance and appeal, achieving the highest possible sale price.

How Consult Folio Enhances Your Investment Strategy

Elevating Investment Performance and Strategic Growth

Consult Folio’s hotel investment advisory is driven by deep transactional expertise and proprietary market intelligence,
ensuring your capital decisions lead to exceptional portfolio growth and financial returns.
Acquisition & Disposition Advisory

Full support for buying or selling hotel assets, including valuation, negotiation, and coordinating the sale process.

Mergers and Acquisitions (M&A) Due Diligence

Conducting forensic review and operational deep-dives to de-risk and ensure accurate valuation of targets in mergers and acquisitions in hospitality industry.

Capital Structuring & Debt Advisory

Advising on the ideal debt-to-equity ratio and securing optimal funding for hotels and resorts through our network of institutional lenders.

Hotel Portfolio Management

Strategic oversight of multi-asset collections, focused on optimizing asset mix, capital allocation, and risk management across the whole group.

 

Financial Modeling & Valuation

Creating custom, data-backed models for asset valuation (DCF, IRR) and stress-testing financial viability under various economic scenarios.

Feasibility & Repositioning Analysis

Leveraging our Feasibility Studies expertise to evaluate repositioning opportunities or new market entry potential within your portfolio.

Owner Representation

Serving as the owner’s strategic representative in all financial discussions with management companies, banks, and legal partners.

Distressed Asset Turnaround

Serving as the owner’s strategic representative in all financial discussions with management companies, banks, and legal partners.

Four Reasons to Hire an Expert for Investment Advisory

Why Engage Expert Hotel Investment Advisors?

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Rigorous Financial Forensics

Our due diligence process, essential for hotel mergers and acquisitions, uses forensic accounting to uncover hidden operational liabilities and over-stated earnings, ensuring you pay the accurate, risk-adjusted price.

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Proven Capital Sourcing Expertise

We maintain relationships with global institutional investors, private equity groups, and lenders, providing streamlined access to optimized funding for hotels and resorts and advantageous term sheets.

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Holistic View of Asset Performance

Unlike transactional firms, our hotel investment advisors integrate operational performance (Revenue/Asset Management data) into valuation, ensuring the price reflects true, sustainable operational potential, not just paper earnings.

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Focused on Long-Term Capital Preservation

Our hospitality investment management approach prioritizes preservation of owner equity and maximizes long-term Internal Rate of Return (IRR), ensuring every acquisition or divestment aligns with the highest strategic goal.

Frequently Asked Questions for Hotel
Investment Advisory

What is the primary difference between a consultant and a hotel investment advisory firm?

A general consultant often focuses on operational or marketing improvements, but a specialized hotel investment advisory firm focuses entirely on the strategic use of capital. We provide services like financial due diligence, asset valuation, M&A support, and capital structuring. Our advice is rooted in deep transactional expertise, ensuring that large-scale financial decisions, such as securing funding for hotels and resorts, maximize returns and minimize financial risk.

How does Consult Folio assist with hotel mergers and acquisitions (M&A)?

We provide end-to-end M&A support. This begins with target screening and market analysis, moves through rigorous financial modeling and valuation, and culminates in leading due diligence and transaction negotiation. Our expertise in mergers and acquisitions in hospitality industry ensures that operational and contractual complexities are understood and factored into the final deal structure, leading to a smooth and profitable transition.

Can you help us secure funding for hotels and resorts?

Yes, our service includes comprehensive capital structuring and sourcing support. We prepare the necessary financial feasibility reports, develop compelling investment memorandums, and actively connect owners with our vast network of institutional lenders, private equity firms, and debt providers. We advise on the most advantageous mix of debt and equity to secure competitive funding for hotels and resorts.

What does hotel portfolio management involve?

Hotel portfolio management is the strategic oversight of a group of two or more hotel assets to optimize performance, risk, and capital allocation across the entire collection. It involves monitoring performance synergy, recommending strategic divestments or acquisitions, and ensuring capital expenditures are prioritized based on the highest portfolio-wide return, rather than single-asset needs.

How do you perform due diligence for a potential hotel acquisition?

Our due diligence goes far beyond standard accounting. We conduct a forensic financial audit, validate the operator's reported performance against market data (including our proprietary Revenue Management metrics), and perform operational and maintenance reviews. This rigorous process is critical in mergers and acquisitions in hospitality industry to identify hidden CapEx needs, operational liabilities, and contract risks, leading to an accurate, risk-adjusted valuation.

At what point should we engage a hotel investment advisory firm for a divestiture?

You should engage a hotel investment advisory firm well before formally listing the property. We work with you in the 6-12 months leading up to a sale to implement strategic performance enhancements (e.g., cost controls, Revenue Management tweaks) and critical CapEx projects that maximize the property's NOI, ensuring it is positioned at its peak financial performance to achieve the highest possible exit value.

Do you advise on optimal debt structuring and refinancing?

Yes, a key part of our hospitality investment management is debt advisory. We analyze your existing loan covenants and rates, model refinancing options, and advise on optimal loan structures (e.g., non-recourse, fixed vs. floating rates) to minimize interest expense and maximize cash flow. We ensure your debt structure is flexible enough to align with the asset's business cycle.

How does Investment Advisory link with your Asset Management services?

The services are fully integrated. Our Asset Management team provides the detailed, real-time operational and financial data on your existing hotel assets. Our Investment Advisory team then uses this proven data to inform strategic capital decisions, such as when to sell, what price to target, and how to structure new acquisitions for optimal portfolio integration.

What risks does your hotel investment advisory service mitigate?

We mitigate risks related to inaccurate valuation, legal exposure from poor transaction structuring, operational liabilities in acquisitions, and suboptimal capital allocation. Our expertise ensures that acquisition prices are fair, divestment prices are maximized, and that your funding for hotels and resorts is secured under the most advantageous commercial terms.

Can your team help us establish a new hospitality investment management vehicle or fund?

Yes, we provide the foundational and strategic support needed to establish new investment vehicles. This includes developing the core investment thesis, drafting the high-level investment memorandum, assisting with partner selection, and setting up the hotel portfolio management and reporting systems required to attract and manage institutional capital effectively.