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Blueshift’s Hospitality Advisory Success in Large-Scale Asset Acquisition

 

Introduction: A €1 Billion Bet on Portuguese Hospitality

Tasked by a major international fund, Blueshift served as a hospitality advisor in a competitive bid to acquire a substantial tourism and real estate asset portfolio valued at over €1 billion. The portfolio encompassed a diverse range of assets, including greenfield projects and operational assets strategically located in major Portuguese tourism destinations such as Lisbon, Porto, the Algarve, and Madeira. Notably, these assets comprised some of the most iconic hotels, resorts, and branded residences complexes in Portugal.

This case study delves into the complexities of the project and the crucial role that Blueshift played, contributing with its extensive experience and knowledge of the Portuguese hotel and resort market, decisively influencing one of the most significant and competitive offerings in the history of hospitality and real estate in Portugal.

Collaborative Expertise: Blueshift’s Role in Multi-Disciplinary Advisory Team

Engaged in a multi-disciplinary team alongside a major international co-investor hotel operator, Blueshift collaborated with various consultants specializing in real estate, legal, and technical areas. The objective was to formulate value-maximizing strategies for operating hotels, resorts and greenfield projects, leading the underwriting process by providing a business plan and valuation for each asset.

In this hospitality consulting assignment, Blueshift was integrated into the advisory team during the non-binding phase and continued its involvement through the binding phase, when the investor consortium competed against two other short-listed bidders. Blueshift’s primary responsibility was to contribute its extensive insights into the Portuguese hotel market, drawing on hands-on experience in managing hotels and resorts within the regions covered by the target portfolio.

Crafting Success: Blueshift’s Strategy Formulation for the Asset Portfolio

The strategic discussions led by Blueshift encompassed a wide array of considerations, including defining the optimal brand strategy, converting underperforming assets into branded residences, identifying key capital expenditure priorities, and exploring cluster-based management approaches. The latter aimed to contain internal competition among properties within the same destination while capitalizing on operational synergies.

Blueshift’s role was not confined to providing insights but extended to leading the underwriting of the assets, using proven, robust analysis and proprietary financial modeling tools and frameworks and leveraging privileged access to local information and intelligence. The hospitality consulting team, guided by Blueshift’s local market knowledge, delved deep into formulating strategies for operating hotels, resorts and branded residences projects within the portfolio. The goal was to maximize the value of each asset while aligning with the fund’s investment objectives.

BlueShift’s Victory Lap: A Collaborative Tale of Success in Hospitality Investment

In the end, Blueshift’s client emerged victorious in the bid, securing the acquisition of the extensive asset portfolio and becoming a major player in the Portuguese tourism and real estate scene. This success underscored the critical role of Blueshift’s hospitality consulting expertise in navigating complex acquisitions within the Portuguese market.

This case study showcases Blueshift’s commitment to providing strategic advisory services in the realm of hospitality investment. With a nuanced understanding of the local market intricacies, Blueshift continues to be a reliable partner for investors seeking to make informed and strategic decisions in the dynamic landscape of hospitality investments in Portugal and Spain.

Written by Filipe Santiago
August, 2023

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