The HI Partners model
At HI Partners, we are renowned both for our dedication and perseverance, as well as for the passion and expert knowledge we invest in each project and with which we are able to generate unique proposals. To achieve this we know that the team is the focal point of our strategy and key to achieving the proposed goals. Thus, we provide training for all our employees, for specific job positions as well as for personal development.
We have developed a code of conduct that prevents conflicts of interest and ensures that the dignity of people, ethics, common sense and reputation of the company prevail.
We are well aware that our employees dedicate a great deal of time and energy to their work. Thus, we have a nutrition andhealth programme and promote leisure time. We believe in the importance of having a fulfilled life in order to develop a complete career and to achieve the identified objectives.
Our business model
We are a leading lodging real estate company in with a portfolio of 14 non-replicable hotels located mainly in established leisure destinations in Spain, including the Canary Islands, Costa del Sol and the Balearic Islands. Most of our hotels are currently operated under local and international well-recognized brand names.
Our unique business model is designed to allow us to identify attractive investment opportunities and execute value added and tailored strategies to unlock value. We seek to acquire underinvested and undermanaged hotel properties fitting our acquisition criteria and reconceptualize such properties through the selection of the best hotel operator and the execution of a detailed business plan, which may include the deployment of strategic capital expenditure, revenue growth initiatives and cost optimization actions. Our business model rests on the following pillars:
In order to maximize profitability at our hotels, we seek to create value throughout all phases of the lodging cycle: from the acquisition of a hotel to its repositioning and active asset management. Our platform comprises a dedicated investment and asset management team, corporate development and finance and investor relations professionals, as well as architects, lawyers and accountants and has been structured to maximize its scalability, which we believe will support our planned expansion. We operate our business based on an institutionalized set of industry processes and high operating standards which have been designed in accordance with the best international business practices. We believe that our highly methodological approach supports our ability to address different operating and strategic challenges in an efficient and timely manner.
Since our inception, we have been able to build a high-quality portfolio of unique hotels. Our main focus is on leisure hotels located in established Spanish leisure destinations given we believe this property type offers distinctive features and greater potential for us to add value using the specialist expertise found in our Company, which we believe provides us with a competitive advantage.
We believe that the Spanish hotel market is mature, and that opportunities exist to acquire old tired assets in unique locations and refurbish them. By doing so, we believe that we can push rates up substantially.
Therefore, our strategy is to continue to acquire and renovate high-quality hotel and resort properties mainly in Spain and to generate superior earnings and value growth through repositioning and implementation of active value-added asset management initiatives.
We Target Leisure Hotels with High Repositioning Potential
We target high-quality hotel properties in unique locations in the upscale and upper upscale leisure segment that are in need of strong repositioning programs and value-added active asset management initiatives to unlock their significant growth potential. Our management team targets hotels in this segment because we believe that combining their unique locations and the appropriate refurbishment will generate attractive risk-adjusted sustainable returns for our shareholders.
Focus on Sizable Assets Located in the Top Spanish Destinations
We target large hotels with more than 200 rooms where economies of scale can be achieved by leveraging on the existing operating platform of the hotel. In addition, we focus on hotels that provide high barriers to entry in the top Spanish leisure destinations and locations with great infrastructure that can attract a diversified international clientele. In particular, we intend to focus on the Canary Islands, given their differential weather year-round, the Balearic Islands, given their popularity and proximity by plane to major European cities, and other attractive Spanish tourist destinations such as Costa del Sol.
Leverage on Best-in-Class Brands and Partners to Strengthen Each Hotel Profile
We focus on partnering with the best leisure and resort brands (both national and international) to strengthen the profile of each hotel. We focus on developing long-term relationships with operators and design bespoke, sophisticated hotel management agreements to ensure incentives are aligned with our business objectives and provide an optimal return for both parties. We also believe that a unique F&B offering is an essential part of our product differentiation strategy and we have partnered with leading F&B operators. This strategy is aimed at increasing foot traffic in the F&B spaces of our hotels and revenue per visit. We also partner with top architecture and design firms to produce cutting-edge designs and ensure the uniqueness of product offering while delivering strong customer focused concepts.
Continue Focus on Asset Value Maximization through Active Hotel Asset Management
We have a leading fully-integrated platform with significant resources and extensive experience managing hotels. We are very hands-on owners and actively manage our properties through strategic positioning to provide product differentiation and an enhanced customer experience. We design our assets to achieve their highest and best use through facility and space conversion to ensure profit maximization.