Asset class hotel
We advise hotel owners on sales, operator search and financing, and support professional investors in Germany under fee-based acquisition mandates. Operator agreements, sustainable trading performance and capex requirements underpin our assessment.
Services
Fox Capital generally advises on larger hotel and real estate transactions from approximately EUR 10 million.
We advise owners selling individual hotels and hotel portfolios, combining a commercially grounded pricing assessment with well-prepared operating and contractual information and targeted approaches to qualified hotel investors in Germany and international markets.
We support professional investors acquiring hotels in Germany under written, fee-based sourcing and acquisition mandates. Acquisition criteria, scope and remuneration are agreed individually; investment decisions remain with the buyer.
We help owners identify suitable hotel groups, brands and independent operators. We compare the commercial terms of lease, management and hybrid arrangements and coordinate operator transitions with the operating business and appointed professional advisors.
For new developments, refurbishment, conversion and repositioning, we support the financing strategy from site acquisition through stabilisation. Operator agreements, the operating concept, capex and ramp-up assumptions inform discussions with suitable capital providers; lending decisions remain with those providers.
Hotel acquisitions
Fox Capital acts as your local transaction advisor in Germany under individually agreed, written and fee-based sourcing and acquisition mandates.
We support individual hotel and hotel portfolio acquisitions, including potential off-market hotel investments in Germany. Investment criteria, operator preferences and risk appetite guide sourcing and owner approaches. Availability is assessed case by case; we do not promise exclusive access. Investment decisions remain with the buyer.
Segments
Each segment has its own earnings logic, its own buyers and its own traps.
Locations tied to trade fairs, airports or city centres. Weekday occupancy and corporate rates drive earnings far more than the star rating.
Long-stay concepts between hospitality and residential use. Length of stay, service levels and contract terms determine operating income and costs.
Standardised brands with a clear cost structure and mostly creditworthy tenants – predictable, but sensitive to payroll and energy costs.
Seasonality and investment requirements shape the assessment. Sustainable earnings are evaluated across several seasons rather than a single peak year.
Hotel and golf course form a commercial unit but may have different owners or operating structures. Accommodation, food and beverage, green fees and memberships are assessed separately.
Concept-driven hotels where earnings depend on the operator and brand. The operator agreement is assessed alongside the property and operating performance.
Standing hotels without a future turned into residential, student or long-stay use – or offices converted into hotels where the location fits.
Holiday resort development
A viable operating concept, suitable cooperation partners and a financing plan connect resort development with the eventual sale to end investors.
The location, destination and target guests inform the mix of accommodation, food and beverage, wellness and events, the operator model and a business plan that also reflects weaker seasons. This concept is the basis for operator selection, financing discussions and future investor assessment.
We approach suitable resort operators, brands, food and beverage providers, event partners and local businesses. Comparable proposals and clearly defined responsibilities support a commercially coherent concept. Qualified external lawyers handle the legal drafting of the agreements.
Meetings, events and seasonal formats can complement leisure demand outside the peak season. Event space and formats are considered from the outset, with revenue assumptions assessed against the destination, target audience and operating capacity.
The financing plan covers land, construction and the ramp-up period through stabilisation. Depending on the project, options may include senior debt, whole loans, mezzanine, preferred equity and joint-venture capital. Funding availability and terms depend on the capital provider's assessment.
A stabilised resort may suit institutional investors, family offices or specialist hospitality buyers. A forward sale before completion may also be considered where appropriate. We prepare operating figures, contracts and the data room and coordinate the agreed exit process without guaranteeing its timing or price.
Related financing
Operators
Fixed or turnover-based rent. Predictable cash flow for the owner while the operator carries the trading risk – covenant and parent guarantee decide.
The owner takes the operating result, the operator runs the hotel for a fee. More upside, but full market risk and reporting effort.
Fixed rent plus turnover share – common in repositionings when both sides should share the ramp-up phase.
Brand affiliation without changing operator. Adds distribution and booking volume, costs fees and requires brand standards.
Metrics
Revenue per available room and average daily rate – benchmarked against the competitive set (STR report), not against wishful numbers.
Gross operating profit as the basis for a sustainable rent: buyers assess whether sustainable GOP supports the contractual rent.
Operating result relative to rent. Buyers and lenders assess how much rent can be supported by sustainable operating earnings.
A reserve for equipment and refurbishment. An inadequate provision can leave deferred investment needs that affect pricing at exit.
Illustrative benchmark – upscale city hotel
Revenue per available room – the key revenue metric
Average daily rate against the competitive set
Annual occupancy, seasonally smoothed
Gross operating profit before rent and debt service
Process
We build the competitive set ourselves rather than take the operator's list at face value. On top of that: demand segments, the pipeline of planned hotels nearby, and an occupancy assumption that survives a weak year. Where STR data is thin, we work through booking platforms and conversations with local houses.
With hotels the lease or management agreement is the real valuation object. We read term, extension options, indexation, maintenance obligations and termination rights together — and test whether the operator's covenant and any parent guarantee actually support the rent.
We run the income approach off a sustainable GOP, not the best year on record. Rent cover, FF&E reserve and any deferred capex come off as a discount. Comparable transactions round it out — rarely a clean match in hospitality, which is why we quote a range instead of a single number.
We approach brands, franchisees and independent operators directly — usually under NDA and without the address in the first step. Then we make the offers genuinely comparable: headline rent says little when term, ramp-up and maintenance obligations differ.
Senior, whole loan or mezzanine for acquisition, refurbishment or repositioning — usually with a separate capex line, because hotels need investment in cycles. We go to market with a finished credit package: trading figures, contract position, business plan and sensitivities in the format credit committees expect.
Off-market to a selected circle, or a structured process when competition drives the price. After notarisation comes the part most people underestimate: operations, inventory, staff, live bookings and licences all have to transfer cleanly, otherwise the buyer starts with friction.
Discretion
Communicating a sale or operator transition at an operating hotel also affects staff, operators, corporate clients and distribution partners. An agreed disclosure process takes these interests and confidential trading information into account. The appropriate breadth of buyer outreach depends on the asset and the owner's objectives.
So hotel mandates run in two stages: anonymised first approach without the address, detailed documents only after an NDA and only to parties we consider serious. Site visits look like ordinary appointments, not a buyer tour with clipboards. Who is informed and when — operator, general manager, key staff, lender — we agree upfront instead of leaving it to chance.
First approach without the address and without photos that give the house away. Anyone genuinely interested signs an NDA before the detail goes out.
Buyer selection reflects the hotel, contract structure and investment profile. Controlled document access supports confidentiality throughout the process.
Who hears what and when — general manager, key staff, operator, lender — is part of the mandate, not something that sorts itself out after the first rumour.
Site visits are coordinated with the operator and scheduled to minimise disruption to guests and staff. Disclosure and access arrangements are agreed in advance.
FAQ
Commercial considerations for hotel owners and professional investors in Germany. Legal and tax advice is provided by qualified external specialists.
A hotel pricing assessment considers location, condition, sustainable operating income, occupancy, ADR, RevPAR, GOP or EBITDA, operator creditworthiness and the lease or management agreement. FF&E, deferred maintenance, capex and development potential also matter. The appropriate method depends on whether the transaction concerns the property, the operating business or both; an assessment is not a guaranteed sale price.
Clarify when vacant operational possession can be delivered, which assets and licences are included, the condition of the building and equipment, and the feasibility of a new operating concept. Potential buyers include hotel groups, owner-operators, family offices and value-add investors. Operator-free status can create flexibility, but is not a guarantee of a higher price. Appointed legal advisors review contractual and employment matters under German law.
Institutional investors, family offices and specialist hotel investors may acquire leased hotels where the lease income, operator covenant and investment profile meet their criteria. They assess rent cover, lease duration, indexation, security, maintenance obligations and capex. A lease does not by itself guarantee stable income or a specific valuation.
Potential buyers include family offices, specialist hospitality investors, hotel groups, owner-operators, private equity and resort developers. Suitability depends on the destination, seasonality, operating concept, investment needs and development potential. Sustainable income across several seasons and revenue from accommodation, food and beverage, wellness and leisure activities inform their assessment.
Buyers assess hotel and golf operations together commercially, while reviewing accommodation, food and beverage, green fees, memberships and events separately. Course maintenance, irrigation, machinery and capex are material. The sale perimeter must clearly identify ownership or leases of the golf land, membership arrangements and the assets included. External specialists review German planning, contractual and tax questions.
Typically the data room includes title and ownership documents, room and floor-area schedules, lease or management agreements and amendments, operator information, historical trading figures, capex and FF&E records, plans, technical reports, energy documentation, permits and fire-safety records. Franchise agreements and relevant information about the operating business are included where applicable. The scope depends on the transaction and is coordinated with the buyer's advisors.
A targeted off-market approach may be appropriate for an operating hotel, a sensitive operator situation or a sale requiring a limited disclosure circle. Initial information can be anonymised, with detailed documents released to qualified parties after an NDA. It does not imply exclusive buyer access or guarantee a sale. The owner and advisor agree the disclosure process and whether a broader structured sale would be more suitable.
Under a written, fee-based advisory mandate, we help define the acquisition strategy, identify potential hotel assets or portfolios, approach owners and coordinate initial commercial assessment, financing discussions and transaction workstreams. We act as the investor's local transaction advisor in Germany, not as the buyer. Legal, tax and technical reviews are performed by appointed specialists.
Related advisory
Discuss the property, operator arrangements and your sale objectives confidentially with Fox Capital.
