Crowdfunding Hotel Aalborg Amsterdam
Introduction
Aalborg Hotel is a successful 3-star hotel located in Amsterdam’s De Pijp district (center/oud-zuid). The hotel is located in a classic Amsterdam building, ideally situated between the RAI, museum district and the Albert Cuyp market. It is frequently visited by both business travelers and tourists.
For the future, Aalborg expects a sharp increase in passengers. Schiphol Airport is building an additional pier as they expect passenger numbers to increase from 52 million to 65 million annually. It is related that Amsterdam will benefit from this growth. Despite the increase in the number of hotels, downtown locations retain their appeal. Prices per overnight stay are expected to increase.
The opportunity arose to participate in Aalborg Hotel to support its expansion plans and continuation of the hotel. The financing of the purchase price has been fully used for capacity expansion by 7 rooms to 43 in total. In the future there is the possibility of adding 10 more rooms.
FBM was asked for:
- Advice and guidance on participation in the operation and real estate of Aalborg Hotel.
- Advice and assistance in arranging financing for the partial business acquisition and setting up the optimal acquisition structure.
- Hotel refinancing.
Phases and work FBM
FBM proceeded through the following phases and work.
- Inventory financial data and legal structure.
- Financial feasibility and advice financial and acquisition structure.
- Compilation of information memorandum for financiers.
- Function as liaison to financiers and advisor in acquisition talks.
- Arranging funding.
- Structure and implement the agreement with the capital provider.
- Simplify legal structure.
- Assist in acquisition process.
Result
FBM worked with the client to develop an optimal financing structure and determine the financing needs. The optimal solution was in combining crowdfunding with bank financing. With partner Collin Crowdfund, FBM raised the required funding in just one week. In this way, the blank part of the financing was appropriately completed and the bank financing could also be completed. Thus, the shares could be acquired and the expansion realized. These cases are thus a good example that crowdfunding and normal bank financing can be used perfectly well together.
