- Existing hotel activity – mid-term debt financing based on operating business, supporting working capital needs, debt restructuring solutions, financing capital expenditures (upgrade of the infrastucture and/ or extension) or changes in the ownership structures (shareholder buyout, re-capitalisation);
- New projects – debt financing of hotel construction and equipment. Primary source of debt repayment is refinancing by banking loan (after completion and launching of the hotel), inflows generated by sale of condo units, respectively or cash flows generated in the operating phase by the hotel. Financing provided by CVI can be the primary source of debt (senior financing, mortgage based) or supplement the equity portion (Mezzanine, junior debt) to fulfil requirements for banking loan.
Hotels & Leisure
Hospitality businesses might be financed in different ways depending on their characteristics and development stage:
Leisure business (aquaparks, spas, adventure parks, sport infrastructure or entertainment facilities) shares similar financing approach as hotels mentioned above (recurring / new projects).
Over the last 5 years CVI made due diligence of over 50 hotel & leisure projects (operating and newly projected), both leisure and city type (hotels) recurring and new (leisure). Key aspects for granting financing are: hotel/ project KPI’s, location and competition, operator’s experience, budget analysis, LTC and LTV estimation as well as equity contribution. Entertainment projects are assessed based on real / assumed KPI’s (number of entries, pricing, competitive pressure, expected changes in customer behaviour, market trends).
Examples of investments