“Symbiotic relationships” between investors and operating partners are increasingly crucial for sustained and enhanced returns, according to hospitality experts.
“It’s not just about owners and operators—there’s a need for a full alignment with funding partners as well,” said Sabina Wyss Di Corrado, VP development Europe, Aimbridge Hospitality. “This is something that has changed since Covid. There’s a lot more communication going on making sure it's a win-win for everybody involved, because as we saw during Covid, there's no point for one to squeeze the other, because we are all in it together. These are long-term relationships.”
This kind of thinking demands a more flexible approach, said Maria Zarraluqui, development VP, Meliá Hotels International. “The market has changed and trying to stick to fixed agreements where there’s no flexibility is a no go in my opinion.” She adds: “When you’re working with different kinds of investors, you have to understand their vision – whether it's a value add or core plus investment, if you’re dealing with a family office. We prefer tailor-made deals that incorporate what the client needs in management agreements from the very beginning. We get this because we own hotels as well.”
Martin Creydt, director and SVP, at Pandox, explains one formula that has worked for them. “A range of models work well in the present landscape,” he said. “But for Pandox, there has been a quite a journey since the crisis of the early nineties, when most banks didn’t even want to look at hotels.
Read the full article on our sister site, Hospitality Investor.