Hermes-Sojitz International Direct Investment Fund started theÊboutique hotels chain foundation, Hermes Heritage Hotels. The collection will consist of 12 hotels located in Northern Italy, which will thenÊenter into IPO and expansion of the chain up to 50 planned boutique hotels.
The Hermes-Sojitz Investment Fund announced the boutique hotels chain foundation in the middle of 2016. By now the concept and the nameÊhave beenÊcreated and sites for construction of the first boutique hotels are determined. Seven facilities are under construction, among them are old-fashioned palazzo, castles, large villas located in different regions of the Northern Italy. Additional investment will be attracted andÊfive more facilities will be added in the future. One of the leading international hotel operators will manage the chain after the complete launch.
According to the Head of Hermes-Sojitz Office in Russia, Oleg Yantovskiy, during the first stage that includes 12 hotels with the overall number of rooms above 540 the project will be able to generate income for investors equal to 10.9 per centÊper year. For further project expansion IPO and chain increase will be carried out up to 50 hotels with the room number equal to 2,250 _- 2,500 rooms. Profitability will amount to 12 per centÊper year after the second stage realization.
Both foreign and Russian investors are interested in participation in Hermes Heritage Hotels project. ÒA business model aimed at opening of several boutique hotels instead of one is the most promising and interesting from profitability perspective for now,” saidÊMr Yantovskiy.Ê”As a result, investment appeal and commercial efficiency of the project are growing.”
