The Club des Hôteliers Francophones is behind this fund, which already counts €210 million in its coffers. It is due to be launched in September of this year.
The Club by THCC is an independent organisation of hotel owners, management experts and suppliers. It currently has 632 members, constituting approximately 1,700 properties in Europe. It took the decision to create the investment fund to support unlisted independent hotel groups and independent hoteliers in the wake of the health crisis.
Among the capital contributors are several Swiss institutions, and as of 30th June the Club's fund had an initial endowment of €210 million, contributed solely by institutional investors. Soon, individual contributions with an entry ticket of €20,000 will be able to add to the fund. Access to it is open to all those who are already part of the club by THCC or who wish to join it (provided that they are unlisted independent hotel groups or independent hoteliers). Investors who want to acquire a property and hotel technology providers based in the French-speaking region are also eligible.
An investment committee made up of hotel professionals and financiers will select the projects to benefit from the financial support of the fund based on a study of their business plan. In addition to financial aid, the fund will support its project holders in four main ways: developing abroad, creating a new concept, launching a new brand and launching a new tool.
The fund's remuneration will take different forms: an equity investment with the option of selling it to generate a capital gain over a ten-year period, or interest paid in return for an amount invested. Alternatively, a combination of these two options is also possible.
The last two years have been explosive for hotel real estate in general, depriving operators of development opportunities. The SIF [Support and Investment Fund] will not be a classic fund or just another venture capital project. Its purpose is to support and revive the sector, taking into account the identity of the hotelier and their independence as basic criteria. Basically, all players in the hospitality market should have access to our bank/fund.
Olivier Steuermann, initiator of the investment fund and President of Club THCC
