In efforts to cover the needs of Greek hoteliers in a constantly changing business environment, HotelBrain is launching the HB Bridge Operation Contract, an innovative mid-term management solution for hotels.
With the new tool, HotelBrain undertakes the mid-term management of a hotel for four to seven years; upgrades and operates the unit as a “white label operator” by retaining its original brand name; provides guaranteed fixed and variable leases; and offers reliable solutions to a number of issues that concern Greek hoteliers.
“Despite the record numbers of Greek tourism, there are many hoteliers who face liquidity problems due to non-performing loans, have no access to funding, or are seeing their enterprises slated for auction,” HotelBrain CEO Panos Paleologos told reporters during a meeting on Tuesday.
HorelBrain’s HB Bridge Operation Contract management model offers:
– A “bridge operation period”, which means that hotels with loans in default are offered the chance to consolidate their debts and also secure their creditors. Furthermore, the hotelier retains the property, increases its value and continues to meet debt obligations. In four to seven years the hotel should be viable, the necessary upgrades will have been completed and the hotelier will be able to undertake the management or continue a partnership with HotelBrain.
– A guarantee for securing better returns without long-term commitments, which often leads to a decrease in the value of hotel units.
– The hotel’s repositioning and bridge management with guarantee, which refers to cases when a hotel is in need of a major upgrade investment for its repositioning but is unable to receive funding.
– Hotel entry bridge management for green field investments – a type of foreign direct investments (FDI) – which are at an early stage. Through a mid-term lease, HotelBrain guarantees the repayment of funds and secures returns without committing the hotel for a long period of time or imposing constraints on the management of its value.
“The new solution has been adopted by seven hotels so far, with positive results for all sides,” Paleologos said. “Through the HB Bridge Operation Contract, we are responsible for the hotel’s ‘healthy’ management and improvement of its financial indicators in a transparent way,” he added.
Hotel management company HotelBrain offers a wide range of personalized services and assists hotel owners to achieve optimum results. The company’s net revenue is expected to increase by 50 percent in 2018 at 30 million euros while the EBIDTA will reach 3 million euros from 1,5 euros in 2017.