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You are looking as the firm — the desk at Marisol Patrimonio, where deals are worked.
Calle San Francisco 4 · Bilbao La Vieja · Ibaiondo
A 46-room hotel on the river side of San Francisco, opened in 2007 and never quite full. Why it is available: the owning family wants out of operating and the current operator's lease ends in December (The seller needs out). What we do: take vacant possession at the lease end, a light refurbishment floor by floor without closing, reposition to the Guggenheim's year-round trade, hold. What has to be true: · 138 EUR ADR at 76 % — the river side of the barrio runs there already. · The refurbishment can be done floor by floor with the hotel trading. · The lease actually ends in December and the operator leaves.
| Unit | Type | Net m² | ADR incl. IVA | Monthly rent |
|---|---|---|---|---|
| Standard room × 36 | STR | 22 | 138 € | — |
| River room × 10 | STR | 30 | 172 € | — |
| Scenario | LTV | Senior debt | LP equity | LP IRR | LP multiple |
|---|---|---|---|---|---|
| No debt | 0 % | 0 € | 7.528.566 € | 12,57 % | 2,49× |
| 55% LTVheadline | 55 % | 5.228.704 € | 3.518.615 € | 17,63 % | 3,65× |
| 65% LTV | 65 % | 6.179.378 € | 2.773.668 € | 19,67 % | 4,24× |
The headline row is the basis Marisol quotes. Returns at other leverage levels are shown so the effect of gearing is visible rather than assumed.
| LP IRR by case | No debt | 55% LTV |
|---|---|---|
| Base | 12,6 % · 2,49× | 17,6 % · 3,65× |
| Downside | 9,4 % · 2,01× | 13,1 % · 2,77× |
| Upside | 15,0 % · 2,90× | 21,6 % · 4,51× |
Cases: downside = occupancy −5% of the plan's (82% → 78%), rate −7.5% (€145 → €134), cap rate +100 bp, works +15%; upside = occupancy +5% of the plan's (82% → 86%), rate +7.5% (€145 → €156), cap rate −50 bp. Moves are relative to the plan's own figure; the rate step depends on its level (5% up to €120, 7.5% to €200, 10% above).
| Year | Revenue | GOP | NOI | Margin |
|---|---|---|---|---|
| 1 | 1602k | 1104k | 788k | 49 % |
| 2 | 1753k | 1220k | 876k | 50 % |
| 3 | 1856k | 1296k | 934k | 50 % |
| 4 | 1893k | 1322k | 952k | 50 % |
| 5 | 1931k | 1348k | 971k | 50 % |
| 6 | 1970k | 1375k | 991k | 50 % |
| 7 | 2009k | 1403k | 1011k | 50 % |
| 8 | 2049k | 1431k | 1031k | 50 % |
| 9 | 2090k | 1460k | 1051k | 50 % |
| 10 | 2132k | 1489k | 1072k | 50 % |
| Operating year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Occupancy | 76 % | 79 % | 82 % | 82 % | 82 % | 82 % | 82 % | 82 % | 82 % | 82 % |
| Total operating revenue | 1602k | 1753k | 1856k | 1893k | 1931k | 1970k | 2009k | 2049k | 2090k | 2132k |
| GOP | 1104k | 1220k | 1296k | 1322k | 1348k | 1375k | 1403k | 1431k | 1460k | 1489k |
| NOI | 788k | 876k | 934k | 952k | 971k | 991k | 1011k | 1031k | 1051k | 1072k |
| NOI margin | 49 % | 50 % | 50 % | 50 % | 50 % | 50 % | 50 % | 50 % | 50 % | 50 % |
Figures in € thousands.