Acquisitions – What does the Future Look Like….

Bertrand Rassat, FCHG’s Acqusitions Expert

We spent some time with our Acquisitions Expert Bertrand Rassat – to find out what his thoughts are on the Acquisitions market as we move away from the Covid Pandemic era and see the light in property and investment in the hospitality sector. Bertrand enables us to draw upon an exclusive network of unique off-market assets across the globe, giving us a sourcing edge that’s tailor-made to our Investor requirements.  

• A bit about you. What attracted you to a career in property?

I have spent the last 20 years in the FinTech sector; I was lucky enough to sit on the board of the last 3 companies I worked for and was therefore involved in all operational aspects of the business.

My last employer was sold to a private equity firm so  I then  took the opportunity to set up my own company, Primextate.

I wanted to combine my interest in real estate with my experience in fintech. Primextate is the result of this combination. It is a digital marketplace of European real estate professionals specialising in off-market properties.

Real estate offers a tangible alternative to traditional financial products. It is accessible, palpable and yet complex when it comes to commercial assets.

So, this was an obvious step in my personal evolution and I am really enjoying working with Four Corners Hospitality Group to source off market properties in the UK, Europe and Worldwide.

• How have you seen commercial property/hotel deals change over the last few years?

Hotels are part of the hospitality sector and over the last two years we have seen how much this sector has suffered from the impact of the pandemic globally.  However, the economy will stabilise and will slowly return to a near-normal situation. The investment outlook for hotels is good and commercial property remains attractive.

This is because the hotel industry in general is an excellent investment option for generating income and building long-term wealth.

We have seen over the past few years that hotel real estate is increasingly attracting private equity and family office funds for the following reasons:

1. High return

2. Tax efficiency

3.Asset diversification

4.Value added possibilities

• What changes are you seeing in the industry now that the Pandemic is over.

I think there has a been a big shift in how people work so remote working has now become common practice for many employees which can only be a positive for hotels. They are no being

used as offices for both business and leisure travellers, as well as for locals looking for a new working environment. It means everyone has to think differently and outside of the box looking at different revenue streams and ideas of how to capitalise on it.

I can also see that on the usual beauty and relaxation spa offerings, there is a rapidly growing demand for health diagnostic technology and bespoke treatment plans and people are prioritizing me time and looking out for themselves more which is perfect for hotels.

Technology and the development of Apps is becoming an increasingly important part of the way hoteliers manage the services they offer to guests and Hotels and the Industry are gaining momentum in this area.

Finally I think today’s customers expect to be recognised and treated as individuals. This comes down to the personal touch throughout the customer journey. This will make people re book and keep coming back.

• Is the Covid impact becoming less now as we move out of the Pandemic?

Overall, hotel owners, investors and lenders fared relatively well during the Covid-19 crisis.

Government support, together with the nature of the pandemic, meant that fewer distressed assets were available than many in the industry had expected. This was also helped by restrained demand, which allowed leisure properties for instance to perform well once the restrictions were lifted.

• What’s your prediction for hotel acquisitions over the next 6 months?

Global inflation has intensified to the highest levels in decades in some of the world’s largest economies. Combined with supply chain bottlenecks, inflation is driving up hotel operating costs and this trend is expected to continue in 2022 – 2023. However, hotels are the only commercial real estate asset class where rental rates are set on a daily basis. Hotels can therefore adjust their prices in real time and are the best hedge against inflation.

In this context, there is a consensus that transaction activity will accelerate further in 2022.

• And finally when you’re not working on an acquisition – what are you doing?

I try to maintain a delicate balance between my other two passions, tennis and wine.

A bit like ying and yang, these passions tend to clash with each other and too much of one can affect my ability to enjoy the other.

So I spend most of my free time negotiating this delicate balance, like a tightrope walker!