For decades, a hotel’s value was explained mainly by three factors: location, category, and operating results and although these elements remain fundamental, the reality of today’s hotel market is far more complex.
The growing sophistication of investors and the professionalization of investment processes have significantly changed the criteria used to evaluate opportunities in the sector.
Today, investors are not simply buying a real estate asset or a hotel business.
They analyze the future capacity to generate value, the sustainability of cash flows, growth potential, and the risks associated with operations. As a result, many owners continue to market their assets around aspects they consider differentiating, while buyers focus on entirely different variables.
One of the elements that has gained the most importance is the quality of management and the operator. Two similar hotels, located in the same city and with comparable characteristics, can achieve very different valuations depending on who manages them and their proven ability to optimize revenue, control costs, and adapt to market changes. Increasingly, the operator has become an essential part of the asset’s value proposition.
Likewise, investors closely analyze the real potential for EBITDA growth. Beyond the results achieved in recent years, they seek to identify opportunities for improvement through repositioning, commercial optimization, new distribution strategies, or operational enhancements. The key question is no longer how much the hotel earns today, but how much it could earn under optimized management.
Another determining factor is the existing contractual structure. Lease, management, or franchise agreements can significantly influence the valuation of a deal. In some cases, a well-structured contract provides stability and reduces risk. In others, certain clauses can limit growth potential or complicate future corporate transactions. The contract has become a strategic asset whose importance is comparable to that of the property itself.
Investors are also paying closer attention to factors that historically received less scrutiny. Excessive reliance on certain distribution channels, the need for future CAPEX investment, labor-related risks, or exposure to overly concentrated demand segments are all elements that can directly affect an investment’s value. The ability to anticipate these risks is a fundamental part of the decision-making process.
On the other hand, there is growing interest in assets that offer long-term value-creation potential. The ability to expand capacity, incorporate new complementary uses, reposition the product, or capture emerging demand trends can be just as important as current financial results. In an increasingly competitive market, future upside has become a key variable for any investor.
In this context, owners considering the sale of a hotel or bringing in new partners need to understand that the market has evolved. Preparing a transaction requires far more than presenting attractive accounts or highlighting a prime location. It is necessary to build a solid investment narrative, backed by data, analysis, and a clear vision of the asset’s future potential.
At Horwath HTL, we observe that the most successful transactions are those in which the owner understands how the investor thinks and adapts their strategy accordingly. Identifying strengths, anticipating risks, and highlighting the aspects that truly influence the investment decision make it possible to maximize the appeal and valuation of a hotel asset.
As the sector continues to attract domestic and international capital, understanding these new evaluation criteria will become increasingly important.
Because, ultimately, investors are no longer looking solely for good hotels; they are looking for assets capable of generating sustainable value over time. And that difference can determine the success or failure of a deal.
Antoni Cuadrada is Senior Advisor at Horwath HTL Spain since November 2017. With a robust background in Capital Markets and Corporate Finance, he specializes in deal sourcing, M&A, and structuring advanced financial solutions for complex transactions. His expertise covers expert reporting, macro- and microeconomic analysis, market trend forecasting, sector impact assessments, and identifying strategic investment opportunities for institutional and private investors.
Antoni has executed over 130 advisory and financing transactions and led more than 50 debt restructuring projects. He is recognized for his ability to design and implement turnaround strategies for companies under economic, financial, and organizational stress. His experience includes advising the Spanish State on corporate recapitalization programs (Fonrec), where he developed viable business plans, sustainability-driven financial reports, and rigorous due diligence processes.
As a seasoned financial analyst, Antoni brings deep insight into central bank policies and their influence on interest rate curves, asset risk premiums, and investment risk-return dynamics. He maintains strong relationships with stakeholders across tourism, hospitality, and leisure, including hotel chains, individual owners, family offices, real estate and credit funds, and public institutions. His specialization in asset management for high-net-worth individuals reinforces his reputation as a trusted advisor in the industry.
Antoni is an active member of the College of Economists of Catalonia and collaborates with the Catalan Institute of Finance. He holds a degree in Economics and Business Sciences from the University of Barcelona, is a Certified European Financial Analyst (EFFAS), and completed the China Module of the MBA program at IESE.
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