Savings and Strategy
GESCO T1 Ltd.
The global coronavirus pandemic has created a unique opportunity with respect to the tourism and hospitality industries in Europe, specifically beachfront hotels and resorts that are suffering due to travel prohibitions and other ever-changing restrictions.
Land Acquisition & Ongoing Revenue Strategy
Why Are We Doing This Now?
The one known factor is that travel will become easier, tourism will increase, and these discounted properties will meet and exceed previous financial targets. For qualified investors with the luxury of time, a moderate return with low risk, overcollateralized by real assets is an easy investment decision.
The acquisition was historically profitable prior to pandemic lock-downs.
Current preexisting revenue, excluding effects of 2020 pandemic.
30-70% acquisition discounts from pre-COVID years.
Modernizing the business plan will yield exponential revenue increases.
Risk is reduced through land holdings and profitability throughout development.
What Creates a 5-Star Resort?
Most of these inexpensive changes will be implemented during refurbishment following initial acquisition
Standalone concierge staff available at least 16 hours a day
A high multilingual staff-to-room ratio—ideally above 2.5
24-hour reception, room service, valet parking, butler, doorman
Fine dining restaurant(s); a standalone lounge and/or bar
Investment During the COVID-19 Pandemic
While GESCO remains cautious during this time, it is still optimistic about its strategy and has always taken a prudent approach on managing of its investments.
- Recent reports about Coronavirus indicate the market will stabilize and begin to recover once there is news that infection rates begin to decline. Investment professionals advocate a diversified portfolio in 2020 and beyond with investments that have low or even negative sensitivity or correlation to equity markets.
- This acquisition strategy presents a great alternative solution that is priced on the NAV of real assets and uncorrelated to the equity markets.
- The 2020 tourism season was the worst on record and devastating to the global economy. Now is the right time to make investments as prices will be lower and future returns will be higher.
A Five Step Plan For Increased Profitability
Acquire & Update preexisting contractual agreements
Refurbish & Recondition
Re-market, Re-brand, Retrain & Influence
Revise business plans to reduce reliance on OTAs
Redevelop in 24-36 months
We look forward to speaking with you.
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