Strategy

ECHO Partners’ strategy is based on the following key considerations and guidelines:

  • We invest exclusively in hotel assets in certain selected European A-Cities.

  • Each of our target cities is expected to face supply constraints due to a combination of a steady increase of incoming travel and local limitation of hospitality platforms (such as Airbnb) and/or the limitation of new hotel construction.

  • This constellation is expected to result in an increase in occupancy, higher room rates and therefore higher rental income.

  • We target gross > 5% unlevered returns and 7-10% levered returns (cash-on-cash equity yields) on a running basis + upside from renegotiated leases and/or opportunistic exits.

  • We aim to keep the Weighted Average Unexpired Lease Term (WAULT) of our assets between seven and twelve years to be able to translate the expected hotel market development in our target cities immediately into higher rental income upon lease expiry.

  • The target sellers’ market with a gross asset value of EUR 10-70 million is highly fragmented, allowing ECHO Partners to consolidate hotels in one single fund.

ECHO has a geographic focus on A-cities in Continental Europe – in strong markets:

Investment Criteria

Target Locations

Amsterdam

Overnights 2017:15.6MM
CAGR 2003-2017:+5.3%

Berlin

Overnights 2017:31.2MM
CAGR 2003-2017:+7.4%

Vienna

Overnights 2017: 14.0MM
CAGR 2003-2017:+4.4%