Financing hospitality development projects: What every developer and investor needs to know.

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HOSPITALITY DEVELOPMENT

Financing hospitality development projects: What every developer and investor needs to know.

By Jose PINTO*

As an hotelier with a vast international experience in hospitality, real estate, resorts and business hotels developments, and most recently as hospitality consultant, I do recommend that Owners and Investors or Governments seeking to invest, develop or create new sites for future tourism developments to look for international consultant experts in the field. *Founder of JP HOSPITALITY & Business Partners

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December 2018

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HOSPITALITY DEVELOPMENT

As experienced in different parts of the World, investments on the hospitality field most of the times originate from sources with experience in different kind of businesses with proven track records in their business field or on the City that they operate assuming that investing in upscale residential, hospitality (Hotels /resorts) and/or mixed-use categories is the same as investing and developing any other business.

View from Ksamil beach, Albania

In reality, Investing in Hospitality (Hotels/Resorts) is more complex.

Investors and developers MUST look into preliminary studies performed by a consultant company. They also must have in mind that it’s important that such consultant company has enough experience in all necessary fields (Real Estate, Marketing, Finance, Legal Advisory, Experienced Hotelier) among others.

that the development project offers a substantial real estate component, meaning residences, condominiums, villas and/or apartments adjacent to small scale hotels or resorts or mixed building concept.

The reason is the immediate ROI from the sales of real estate.

View from the Lin village

Often lack of critical elements required to start such projects and to entice potential investors are missing due to lack of knowledge and do create delays, unexpected expenditures and approvals for next steps.

Often the challenges we see when requested to meet to evaluate the viability of a potential ground-up development project is in the initial proper feasibility study which is not often perceived as necessary.

And therefore the set-up of a proper investment presentation is not appealing to investors.

What has changed in terms of the appetites of international investors is the requirement December 2018

In the meantime, let’s be ready with all it takes to convince them that Albania has all for investing, including one of the most unspoilt Coast with two Oceans, Mountains and hills that are gems for eco-tourism, unique culture and Bio Food and cities and villages that resist time. And on top of all, its most conspicuous feature of being the most hospitable people in Europe.

We, at JP HOSPITALITY (www.jphospitality.eu) are associate with local and international partners with a wide experience and we are ready to assist that your dreams can come through in and for "My Albania."

Having a strong brand operator is necessary and it is an integral part of the investment opportunity, but approaching or getting them on board before a strong and clear feasibility study is performed is not advisable.

Investors or developers require an experienced operator as part of the deal, but that also require deep research’s that often are missed.

Albania is the new Gem in Europe. I am sure the demand for international investment is and will be increasing once extra benefits are awarded.

The great news for developers/investors desiring to build any Hotel/Resort or upscale mixed projects is that hospitality brands are seeking to expand their portfolio and brand presence especially in Albania.

To conclude, we encourage the owners, the developers and the investors to follow up the necessary steps that guarantee a successful investment journey. It is imperative that you are fully aware of the destination and the market you want to invest, so that your success in attracting the ideal international investor gets "excited."

Contact details: As said “the great news “ is also international investors have appetite for investment in projects or large development projects once they sound and convince them on their returns therefore a solid presentation and convincing team must be at hand.

JP Hospitality Eu jose.pinto@jphospitality.eu www.jphospitality.eu Tirana, Albania

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