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Due Diligence & Acquisition Review

Understand what you are acquiring – and what requirements follow from it.

What is examined in hotel due diligence?

Commercial and operational hotel due diligence examines whether the actual business supports the assumptions behind a proposed acquisition. Operating results, demand, cost structure, the operator’s concept and identifiable risks are central. FRITZ HOTEL CONSULTING assesses these matters from a hospitality perspective. Legal, tax and building-related investigations are undertaken separately by the relevant specialists.

In a hotel investment, numerous assumptions lie behind the reported results: about demand, management, the condition of the offer and future investment needs. A well-founded acquisition review makes these relationships visible.

FRITZ HOTEL CONSULTING supports investors in the economic, operational and conceptual review of hotels. We question the information provided and assess how plausible the business model is under the intended conditions.

Your contact: Johannes Fritz Groebler

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What we do for you

01

Reviewing the market and positioning

We assess the hotel in relation to location, demand and competition. In doing so we consider its current market position and possible development prospects.

02

Analysing operating results

We examine revenue structure, occupancy, room rates, personnel costs and key cost items. One-off effects and deviations between different reporting periods are questioned.

03

Testing forecasts for plausibility

We compare seller or operator forecasts with past performance and market conditions. Key assumptions are supplemented by alternative scenarios.

04

Putting operating requirements and investments into context

We look at the room product, public areas, service offer and organisational structures. We align recognisable operational investment needs with the findings of technical specialist reviews.

05

Economically assessing the operator and contract structure

We analyse the effects of lease, management and franchise agreements on results and room for manoeuvre. Legal assessments are coordinated with the legal advisers you have appointed.

Your outcome:

What you receive

A structured presentation of the main opportunities, risks and open points. You receive a sound basis for your investment decision, further reviews and the economic negotiation.

Let us review your hotel investment.

Do you have a specific property in mind, or would you like an independent assessment before a purchase decision? We support you in the review.

Arrange an initial conversation