Acquiring a hotel, serviced residence or developing a hospitality project is about far more than purchasing a property.

It means investing in a real estate asset, a location, an operating business and a potential source of long-term value creation.

For private investors, entrepreneurs and family offices, hospitality can offer an attractive combination of real estate ownership, operating returns, capital appreciation and, when appropriately structured, significant tax and estate-planning opportunities.

NICOLSON advises investors on the sourcing and acquisition of hospitality assets, primarily in Paris and the South of France.

Our role is to identify the opportunity, analyse it, lead the commercial negotiation and advise the investor throughout the transaction, bringing together the specialist expertise required to make an informed decision.

One transaction. Multiple areas of expertise. One real estate and commercial adviser.

1/ A real estate and entrepreneurial approach

A hospitality asset must be considered simultaneously as real estate and as a business.

Location, land, buildings, capacity, regulation, renovation, concept, operations, revenue, profitability and repositioning potential all contribute to its value.

Acquiring the freehold and the business. Taking over an existing operation. Converting a property. Repositioning an established hotel. Developing a serviced or para-hospitality concept.

Each situation requires a different approach.

Our first task is to understand where the opportunity truly lies before structuring the transaction.

2/ Returns, value creation and long-term ownership

Hospitality offers something that traditional residential real estate does not always provide: the ability to create value simultaneously through the property and through its operation.

A well-acquired and well-positioned asset can generate operating income while benefiting from improvements to the property, repositioning, renovation, increased capacity or the development of a stronger hospitality concept.

For an entrepreneur or family office, this can provide an attractive combination of yield, tangible asset ownership and long-term capital value.

The investment case should therefore be assessed not only on today’s performance, but on what the asset and its operation could become.

The objective is not simply to acquire an income-producing property. It is to identify and unlock its potential for value creation.

3/ A potentially attractive tax and estate-planning environment

Depending on the asset, operating model, ownership structure and the investor’s personal circumstances, hospitality investments may also benefit from particularly attractive tax treatment compared with conventional residential property ownership.

The operating nature of the activity can create opportunities in relation to VAT, depreciation, deductible expenditure and the taxation of income and capital gains.

The appropriate ownership and operating structure may also have important consequences for long-term wealth planning and the eventual transfer of the asset to the next generation.

For entrepreneurs who have recently sold a business, certain investment structures may also form part of a broader reinvestment or wealth-planning strategy.

These considerations must naturally be assessed on a case-by-case basis with the investor’s tax, legal and wealth advisers.

NICOLSON’s role is to identify these issues early enough in the acquisition process for the appropriate specialists to analyse them before the investment structure is finalised.

Performance should be considered throughout the investment cycle: acquisition, operation, ownership, disposal and ultimately transmission.

4/ Sourcing & Off-Market

The most interesting hospitality opportunities are not always publicly marketed.

Our presence in Paris and the South of France, combined with our real estate, entrepreneurial and wealth-management network, enables us to identify assets through owners, operators and market professionals.

We can also conduct a targeted search based on an investment thesis agreed with the client: geography, asset size, number of rooms, positioning, budget, operating model, target returns and value-creation potential.

Our search is never restricted to assets directly represented by NICOLSON.

We collaborate with other agents and specialist professionals whenever they control the right opportunity.

Our objective is not to sell an asset. It is to identify the asset that fits the investor’s strategy.

5/ Analysis before acquisition

A hospitality opportunity needs to be assessed beyond its asking price.

We undertake an initial real estate and commercial analysis to understand the fundamentals of the opportunity: location, property, existing operation, required capital expenditure, potential, competitive environment and repositioning opportunities.

This first analysis identifies the questions that require further investigation and the specialist expertise needed before committing capital.

The objective is to transform an opportunity into a documented investment decision.

6/ Structuring and leading the negotiation

In a hospitality acquisition, negotiation is never solely about price.

The scope of the transaction, freehold, business assets, operating company, furniture and equipment, capital expenditure, warranties, conditions precedent, exclusivity and timing can materially affect the economics of the investment.

NICOLSON assists the investor in structuring the offer and leads the commercial discussions with the owner or their representatives.

As an intermediary, our position enables us to understand both parties, identify potential obstacles and maintain a constructive dialogue throughout the process.

Negotiation means protecting our client’s objectives while creating the conditions necessary to complete the right transaction.

7/ Coordinating due diligence

Once the principal commercial terms have been agreed, a critical phase begins: testing the assumptions on which the investment is based.

NICOLSON works with the client to identify the issues requiring investigation and facilitates the involvement of the appropriate specialists:

Lawyers & Notaries
Legal structure, title, contracts and transaction documentation.

Accountants & Financial Advisers
Historical performance, operating results and business plan.

Architects & Technical Consultants
Buildings, capital expenditure, regulatory requirements and development potential.

Hospitality Consultants & Operators
Concept, positioning, operational model and future performance.

Tax, Private Banking & Wealth Advisers
Investment structuring, financing, taxation and long-term wealth considerations.

Each professional naturally remains responsible for their own analysis and advice.

NICOLSON retains the overall real estate and commercial perspective, facilitates the exchange of information and ensures that the findings can inform both the investment decision and, where appropriate, the negotiation.

8/ Allowing the transaction to evolve

Due diligence is not simply about confirming an acquisition.

It may reveal additional capital expenditure, regulatory constraints, different operating performance or previously unidentified opportunities for value creation.

These findings can materially change the economics of the project.

NICOLSON helps the investor understand their real estate and commercial implications and, when necessary, reopens negotiations or revises the terms of the transaction.

Proceed. Renegotiate. Restructure — or walk away.

Advisory also means preserving the freedom not to complete a transaction.

9/ Thinking about operations before acquisition

The future value of a hospitality asset depends significantly on what happens after completion.

We can therefore involve potential hotel operators, management companies, hospitality consultants, architects, designers, technical advisers and local specialists early in the acquisition process.

For investors who do not intend to operate the hotel themselves, the identification of an operator or management partner can begin before the acquisition is completed.

This allows the investment thesis to be tested against the realities of future operations, capital expenditure and implementation.

We think about what comes after the acquisition before completing the acquisition itself.

10/ For entrepreneurs & family offices

For an entrepreneur who has sold a business, hospitality can represent much more than real estate diversification.

It offers the opportunity to reinvest entrepreneurial experience and capital into a tangible asset, an operating business and a long-term wealth project.

It can provide income and value-creation potential while allowing the investor to develop a concept, create a brand, become involved in a destination and ultimately build an asset that may be held and transferred over generations.

Yet entering hospitality also means entering a new ecosystem: real estate, operations, regulation, financing, architecture, food & beverage, staffing, distribution and guest experience.

The investor does not need to become an expert in each of these disciplines.

NICOLSON advises on the real estate and transaction while helping to bring the right expertise around the table.

Entrepreneurial hospitality investment, without having to undertake it alone.

11/ Continuous involvement, from opportunity to closing

Our value also lies in the continuity of our involvement.

SEARCH
Identify the asset, approach owners and access opportunities.

ANALYSIS
Understand the real estate, existing operation, economics and potential.

NEGOTIATION
Structure the offer and lead commercial negotiations.

DUE DILIGENCE
Bring together specialist advisers, facilitate information and coordinate the process.

STRUCTURING
Ensure legal, financial, tax and wealth considerations are identified and addressed by the appropriate advisers.

PROJECT
Test the acquisition against its future concept and operating model.

RENEGOTIATION
Integrate due diligence findings and, where necessary, revise the commercial terms.

CLOSING
Maintain dialogue between the parties and support the transaction through completion.

NICOLSON — Real Estate Advisory & Commercial Intermediation

12/ Experience across hospitality transactions

Our approach is built on assignments in which NICOLSON acts as real estate adviser and commercial intermediary, maintaining its involvement from the identification of the opportunity through to completion.

Hotel acquisition — Mediterranean Coast

Buyer advisory

Identification of the opportunity and initial approach to the owner. Preliminary analysis of the asset and assistance to the investor in defining the acquisition project.

NICOLSON leads commercial discussions and negotiations, gathers the information required to assess the transaction and facilitates the involvement of the client’s legal, financial, technical and operational advisers.

The conclusions of these different workstreams are incorporated into the investment analysis and, where appropriate, into the negotiation of the final acquisition terms.

Sourcing · Advisory · Intermediation · Negotiation · Due Diligence Coordination · Closing

Hotel repositioning — Provence

Investor advisory

Analysis of an existing hospitality asset offering repositioning potential, with particular attention to the relationship between the real estate, hospitality concept, required investment and future operating model.

NICOLSON facilitates discussions with the specialists required to assess the project, including hospitality professionals, architects, potential operators and the investor’s own advisers.

This enables the acquisition assumptions to be tested against the realities of the future project before a final commitment is made.

Analysis · Advisory · Project Team · Intermediation · Negotiation

Serviced hospitality project — South of France

Search & acquisition advisory

Search for an asset suitable for the development of a serviced hospitality project and assessment of its real estate potential.

NICOLSON assists the investor with the search, owner approach, commercial negotiation and identification of the principal issues requiring further investigation.

Specialist matters are entrusted to the relevant professionals and their conclusions incorporated into the acquisition decision.

Search · Real Estate Analysis · Intermediation · Negotiation · Expert Coordination

A clearly defined role

NICOLSON does not seek to replace the architect, lawyer, accountant, hotel operator, tax adviser or financial adviser.

Our expertise is to understand the real estate opportunity, lead its commercial intermediation and retain an overall view of the transaction throughout the acquisition process.

We identify the questions that need to be answered, bring together the professionals capable of answering them and integrate their conclusions into the real estate strategy and negotiation.

This continuity gives the investor one committed real estate and commercial adviser from the first conversation with the owner through to closing.

HOSPITALITY ADVISORY

You know how to build businesses. We help you invest in a new one.