Hermes-Sojitz International Investment Fund started implementing of new boutique hotels chain under Hermes Heritage Hotels brand. Collection will consist of 12 hotels located in the Northern Italy. The launch is expected in late 2018. In near future the fund is planning the expansion of the chain from 12 to 50 boutique hotels by attracting additional funding.
Hermes-Sojitz International Investment Fund started implementation of the boutique hotels chain project under the brand Hermes Heritage Hotels. During initial stage the collection will comprise of 12 unique hotels located in the northern part of Italy. Right after launch that is planned for late 2018 the fund is oriented at the chain expansion up to 50 hotels by attracting additional funding from IPO.
The Hermes-Sojitz Investment Fund has announced boutique hotels chain foundation in the middle of 2016. By now the concept and the brand are created and properties for the first boutique hotels are determined. Seven pieces of property are under reconstruction, among them are old-fashioned palazzos, castles, large villas located in different regions of the Northern Italy. Five more boutique hotels will be gained to the chain by attracting additional funds in the nearest future. One of the leading international hotel operators will be running management of the chain after complete launch.
According to the Head of Hermes-Sojitz Office in Russia Oleg Yantovskiy, on the first stage that will include 12 hotels with more than 540 keys overall the project will be able to generate income for investors equal to 10,9% per year. For further project scaling the chain will be increased up to 50 boutique hotels with 2250-2500 keys. The yields will rise to 12% annum right after the second stage implementation.
Both foreign and Russian investors are interested in Hermes Heritage Hotels project. Oleg Yantovskiy has the following opinion on the matter: “Nowadays a business model based on running several boutique hotels as a chain is more promising than running one single hotel in terms of revenue, therefore both investment appeal and commercial efficiency of the project are increasing”.