Contact Us
Contact Us

Hotel Invest Strategy

Growth Strategy

Hotel management contract consolidation model

  • It is important to make clear that Estoril 8023 is not acquiring hotel assets or property assets but going into a management company, so it clearly qualifies for the Portuguese Golden Visa
  • Estoril 8023 negotiates the taking over of the management contracts of the hotels. The hotel management contracts Estoril 8023 secures will typically be valid for 25 to 30 years
  • When negotiating, a clear distinction is made between the real estate value of a hotel and the value of the hotel management operation

Participant principles & benefits

  • The opportunity to have a stake in a larger consolidated hotel management company
  • Provide an attractive consolidation incentive package
  • Annual rent payments equivalent to 5% of the value of their hotel asset
  • Payment of 30% in cash of the management contract value (minus 30% of the annual rent), to the owner of the hotel in question
  • The remaining 70% of the value of the management contract (minus 70% of the annual rent), will be converted into shares of Estoril 8023, which the hotel owner will then hold

Example: Case Study

A Small hotel with:

30 rooms & 2500 m2 construction Above ground & annual operational cash flow of €1million.

A well located hotel in Lisbon could have an asset value of around €5.000 per m2, i.e. an asset value of €12.5 million.

With €1 million in annual profits, the hotel operational valuation could be accepted to be around 8 times that, i.e. €8 million (a multiple of 8 was applied when calculating the value of this hotel management contract).

The Estoril 8023 proposal to the owner of this hotel would be:

  • The amount of one annual rent paid to the hotel is deducted from the value attributed to the management contract: €8.000.000 – €625.000 = €7.375,000 (625,000 Euros is 5 % of the asset value)
  • 30% of the €7.375.000 is then paid to the owner = €2.212.515
  • 70% of the €7.375.000 is converted into shares in the Estoril 8023 hotel operations company, to be held by the hotel owner
Our Services

Investment Journey

Identify potential partners

  • Conduct thorough market research to identify potential hotel owners interested in operational consolidation
  • Approach owners with a compelling value proposition highlighting the benefits of joining Estoril 8023

Negotiate agreements

  • Negotiate management contracts with interested hotel owners, ensuring terms are mutually beneficial
  • Structure agreements to optimize benefits for both parties, emphasizing long-term value creation

Execution and Integration

  • Execute consolidation agreements according to agreed timelines
  • Ensure smooth integration of new hotel operations into Estoril 8023’s management portfolio
  • Implement best practices and standardized processes across all managed properties to maximize operational efficiencies and profits

Continuous monitoring and optimization

  • Continuously monitor performance metrics and financial indicators of managed hotels
  • Identify opportunities for further optimization and cost savings
  • Adapt strategies as needed to align with evolving market dynamics and business objectives

Exit Strategy

There are two main exit strategies that will provide returns to the investors in the Hotel Invest Fund

1. LISTING ON THE PORTUGUESE STOCK EXCHANGE

  • IPO – Initial Public Share Offering
  • Offering shares of Estoril 8023 to the public on the Portuguese stock market, will allow it to raise significant amounts of investment, benefiting its existing shareholders, including the Hotel Invest Fund unit holders
  • Initial discussions with investment banks regarding an IPO have been extremely encouraging

2. FOUNDING SHAREHOLDERS ACQUIRE FULL OWNERSHIP OF THE COMPANY

Should the Board of Estoril 8023 decide against an IPO exit strategy, the founding shareholders of Estoril 8023 will have the obligation to acquire full ownership of the company at a price to be independently established by one of the four leading auditing firms in the world

Please contact us for a full presentation in English, Mandarin, Turkish, Vietnamese, Portuguese or Spanish

Avenida Engenheiro Duarte Pacheco Torre 1-15º (Penthouse Office) Piso – Sala 2, 1070-101 Lisbon, Portugal

sales@fundboxcoinvest.com

Contact Our Team