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Velvet Hotel Fund

Our new Velvet hotel fund provides a fully integrated platform to investors willing to get exposure to the Central European hotel market and benefit
from current attractive opportunities through a special situation investor.

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Target assets
Target assets

Hotels or mixed-use assets where the hotel component generates more than 50% of the rental income or EBITDA

Target returns
Target returns

Equity yield 5%
IRR 12%

Geographical focus
Geographical focus

Major markets in Central Europe and neighbouring countries

Financing
Financing

LTV target of 50% at fund level

ABOUT THE FUND

Fund management
Fund management

▪ Accounting and Tax
▪ Reporting to competent authorities
▪ Compliance
▪ Quarterly NAV calculations
▪ SPV management

Portfolio Management
Portfolio Management

▪ Macro and micro research to identify target markets and follow market trends
▪ Development of investment strategy and objectives
▪ Risk management
▪ Financing
▪ Insurance
▪ Data and document management

Asset Management
Asset Management

▪ Reporting on portfolio assets
▪ Prepare rental/operating concepts for new tenants or operators
▪ Rental of other areas if necessary
▪ Selection, coordination and appointment of companies for CAPEX
▪ Project management for refurbishment and extension projects

Acquisitions
Acquisitions

▪ Maintain extensive network of brokers, operators, owners and banks to source deals
▪ Assessment of potential acquisitions
▪ Full due diligence of identified opportunities with legal and technical advisors
▪ Negotiation on economic terms
▪ Transaction structuring
▪ Contract negotiation and closing

Disposals
Disposals

▪ Teaser/info memo preparation with selected broker
▪ Data room set up
▪ Data room and Q&A management
▪ Negotiation on economic terms
▪ Contract negotiation and closing

FUND DETAILS

  • Fund vehicle set up in Prague, Czech Republic
  • This vehicle invests in hotels or mixed use assets with a hotel component
  • Management company: OTT Ventures s.r.o.

ACCOUNTING, REGULATORY, TAX

  • Fund depositary: AMISTA IS
  • Tax and accounting: AMISTA IS
  • Board members (4): AMISTA IS (2), Jean-Francois OTT, OTT Ventures and one other independant board member

Why invest in the hotel asset class

After being left to hotel specialists this asset class has seen a growing institutional demand over
the last few years. This has substantially improved liquidity thus further decreasing its risk profile.

 

Trading assets

Unlike any other asset class, hotels are trading assets where owners should understand the business of their tenant or operator as this impacts the asset value. This increases the barriers to entry but also supports returns.

Lower risk profile

Leases as well as management or franchise contracts are always signed on a long-term basis, on average for ca. 20 years. This allows investors to reduce their investments’ risk profile.

Growing travel

Despite short to mid term negative impacts such as economic crisis or pandemics, regions remain extremely connected and travel keeps its long-term growing trend.

Risk return

With a lower risk profile than most other asset classes, and enhanced returns, the hotel asset class offers a very attractive risk-return for investors.

10+ projects
analyzed every month
10–75 m EUR
usual acquisition size
30 years
experience in real estate
2 bln EUR
invested in CEE

Our team of real estate and hotel experts

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Jean Francois Ott
Fund founder
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Nicolas Horky
Fund manager
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David Štýbr
Partner
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Stefan Radstrom
Partner

We have worked with

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Email Us
info@velvet-fund.com

Get in touch with our team