Hotel Property - Buying Or Selling Of Hotel In Germany

Hotel Properties for Sale or Purchase

The category of “hotel properties” comes under the accommodation and hospitality industry. It provides an accommodation facility with superior equipment and service on payment for comfortable lodging, meals and other services. The clientele in the hotel property in Germany are usually domestic and foreign travelers. Hotels offer not only overnight accommodation but also function rooms for special occasions such as as conferences, meetings or seminars. An accommodation facility is considered as such when at least twenty rooms are available for customers. Each of them must be provided with a separate sanitary unit. As an operator of a hotel property it is important to distinguish between the ownership and operating lease. The business model of owner-operated hotels can be found more frequently in smaller family-run business. The owner can call the establishment a hotel property, and even a hotel company. Internationally, this is considered the most common form. A contract sets a dividing line between capital and management. The hotel company can act on behalf of the owner of the hotel property under his or her own name, but on behalf of others, and that is the business risk carried by the owner. For profit and loss, the risk of investment also needs to be considered. The third variant is where an operator of a hotel property takes lease of conventional real estate property, in this kind of business, the risk is transferred to the lessee. The tenant pays for the transfer of hotel property along with an agreed interest rate. In Germany, this is the most widespread variant. It usually takes 20 to 30 years for completion of a long-term lease on hotel properties. There is a wide variety among the hotel properties in Germany. They can be divided according to the location, such as City Hotel, Town Hotel, Country hotel, Airport Hotel or Beach Hotel. The hotel property may be classified according to the same target group, such as for overnight guests, business travelers, conventions, holidays or spa facilit. A distinction is also possible for the equipment such as Whole Hotel, Bread and Breakfast, Apartment Hotel, Hotel Suite or Boutique Hotel. In addition, the distinction can also be drawn based on services and facilities such as Luxury Hotel, Commercial Hotel, Economy Hotel, Standard Hotel and Budget Hotel. The internationally best-known classification is made according to the assessment of equipment and services in the form of an award of up to five stars. One star is to be equated with the simplest of claims for accommodation, while five stars stand as the maximum value met by the highest standards in luxury. For investments in hotel facilities, one should first make an analysis of specific indicators. It is important to determine the occupancy rate and review the total revenue from all sectors such as hotel accommodation and sale of goods or food and beverage. A probate code for the success of hotel properties is the determination of the room rate, RevPAR (revenue per available room). This benchmark with national and international importance, determines the average revenue per lodging room, taking into account the total occupancy of the hotel property. The most important factors to consider before investing in hotel real estate are location, hotel operators and the nature of the hotel. Examination of the situation in any real estate investment is of great importance, but even more so regarding hotel real estate. A general recommendation for setting up a hotel does not exist, because the assessment must take account of the whole nature and intentions of the hotel property. An investor must examine in detail whether the existing nature or strategy can be used for sustainable success. A professional market and location analysis is important at this point, and both the macro- and the micro-location must be examined in depth. A hotel real estate investor should be aware that the success of a hotel operation is directly dependent on the economic situation at any given time. Unlike with other commercial real estate such as office space or retail space where the long-term leases are completed, hotel operators are constantly looking for new guests. For this reason, determining a particular hotel concept, or nature, is of primary importance. This is especially true in times of economic crisis. The concept must be tailored precisely to reach the target group, so that the guest feels addressed. The success of a hotel is highly dependent on the respective operators and investors must select the hotel company or tenant very carefully. The most important criteria in evaluating the creditworthiness of operators are competence, experience, reputation, market position, and international marketing.

Buying Guides for hotel properties in Germany

KARODI -The Investment Property Specialist real estate agent from Germany is at your service nationwide for sale or purchase of hotel property / hotel real estate investments . In particular, we are active in the cities of Aachen, Bergisch Gladbach, Berlin, Bonn, Dortmund, Dusseldorf, Essen, Hamburg, Frankfurt, Koblenz, Cologne, Leverkusen, Mainz, Munich, Munster, Neuss, Stuttgart, Solingen, Wiesbaden and Wuppertal, or in the territory of the federal states of North Rhine-Westphalia (NRW), Hessen and Rhineland-Palatinate.