Acquisition 10 hotels

Opportunity

Focus Hotels Management secured the rescue of 10 properties on behalf of a major institutional investor prior to the incumbent tenant going into administration. Focus took over the existing leases and identified a solution of new short-term leases based on a profit share rent with terms similar to a management contract.

Within two weeks of the administration Focus assumed control and managed the hotels out of administration on behalf of the investor. Within three months Focus presented the investor with a comprehensive property improvement plan and went on to successfully transition these 10 hotels to the Mercure brand. The initial agreement was extended from 5 to 10 years with the assets being sold a number of years later achieving the desired return for the investor.