Investment Strategy

Structured mezzanine capital deployed exclusively into branded hotel assets, targeting superior risk-adjusted returns through contractual income and equity-linked upside.

Investment Focus

The Fund invests exclusively in branded hotels, as brands provide visibility on demand, standardized operations, and stronger positioning with lenders and institutional buyers. Compared to independent hotels, branded assets tend to be more resilient across cycles, benefit from centralized sales and loyalty programs, and offer clearer paths to refinancing and exit.

70%
Refurbishment & Repositioning
30%
Selective Greenfield
3★–4★
Branded Hotels
€2–5M
Per Hotel Investment

Mezzanine Capital Structure

Mezzanine capital is positioned between senior debt, sponsor equity, and brand key money. This instrument allows Brimerock to capture contractual yield and equity-linked upside while benefiting from senior-like downside protection.

15–18%
Target Net IRR p.a.
≤65%
Maximum LTV
≥30%
Minimum Sponsor Equity
5–7 yrs
Exit Horizon

The Branded Advantage

Operational Outperformance

Branded properties achieve consistently higher occupancy and, during downturns, superior net operating income.

Global Distribution

Central reservation platforms and loyalty programs drive repeat business and international demand that independents cannot access.

Revenue Management

Brand affiliation delivers better visibility, negotiated contracts, and professional yield management.

Institutional Preference

Branded hotels are more liquid and attract stronger interest from institutional investors, often trading at tighter cap rates.

Operational Standards

Brand-mandated procedures create consistent operating discipline, safety, and quality assurance.

Innovation Access

Membership in a brand network enhances access to revenue tools, technology, and dynamic pricing.

What We Do Not Invest In

Unbranded / Independent Hotels

Assets without an established hotel brand, proven operating standards, or access to global distribution.

Greenfield Without Permitting

Projects lacking finalized zoning, building permits, or clear construction timelines.

Primary 5★ Luxury Hotels

High-fixed-cost assets with elevated staffing requirements and volatile demand profiles.

Secondary Locations

Markets without proven year-round demand drivers or sufficient transport connectivity.

Under-Capitalized Structures

Projects relying on aggressive leverage or limited sponsor equity.

Explore the Market

Discover why Romania and Southeast Europe present a compelling opportunity for branded hotel capital deployment.

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