An entrepreneur had bought a building in Emden, Germany, at a favourable price with the aim of running a hotel there. He needed another 700,000 EUR for renovation and furnishing.
We analysed the competitive situation at the location and advised positioning the hotel in the lower midfield in terms of price and in the upper midrange in terms of supply.
With the help of occupancy and cost data from the industry association, we worked out a monthly profit and loss statement and combined it with the interest and redemption payments to the banks. This showed the viability of the project.
For the financing, we put together a package of bank loans, loans from the development bank of the state of Lower Saxony and a subsidy from public funds.