Algonquin creates value at several stages of the acquisition process and throughout the holding period.
Acquisition sourcing and underwriting :
- Algonquin’s development teams are present in 3 countries and screen the market for opportunities in Western Europe, the UK, and the most mature countries of Eastern Europe (Poland and Czech Republic);
- Investment opportunities can originate from different horizons, such as traditional brokers, investment banks, hotel operators, receivers, lawyers, etc. Local knowledge of those players is required to insure a high quality deal-flow;
- Over time Algonquin has managed to secure a significant proprietary deal-flow, allowing the group to often benefit from more attractive entry values than on heavily intermediated deals.
Equity syndication and financing structure:
- Algonquin structures its club deals with recurring co-investors from different horizons: family offices, private equity funds, institutional investors;
- Depending on the risk/reward profile and size of the acquisition, Algonquin takes a 2% to 50% equity stake in all of its investments;
- Joint ventures are structured following transparent and customized governance and liquidity features;
- Algonquin supervises all due diligence processes;
- Algonquin maintains long term relationships with major European banks which are regularly involved in the financing of the group’s operations.
Asset management during the holding period:
- Financial and operational control and audits: implementation of precise performance monitoring through reporting, financial control, budgeting, cash-flow management, productivity and revenue optimization;
- Technical and real estate: implementation and monitoring of capex investments, property management and project management;
- Platforms for day-to-day operational support: yield management, sales and marketing, reservations, IT, digital management.
- Relationship management with brands and international hotel operators.
- Open to exit opportunities through the constant monitoring of asset’s maturity and valuations in connection with market cycles in order to create favorable exit conditions;
- Upstream identification of potential buyers;
- Set-up of a competitive exit process.