Our Services   

PDC Advisors works exclusively with accommodation companies, helping them raise private capital for expansion needs. Based on strict criteria we choose companies we feel can grow at rapid pace and amplify their ability to raise capital at attractive terms.

Plan

  • Discussion of growth plans
  • Financial projections based on the business plan
  • Capital required to meet objectives
  • Owner priorities – cash out, cash in, growth capital, exit scenarios
  • Required timeline

Devise

  • Review of marketing materials
  • Review of financial projections
  • Discussion of potential Day 1 investors
  • Review of potential structures of capital investment
  • Arranging of investor meetings
  • Follow-up and feedback
  • Analysis and negotiation of investment terms

Connect

  • Varied investor segments
  • Initial vetting by PDC Advisors 

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The Industry   

New concepts and variations on existing concepts have emerged in recent years. Increasingly we are seeing a quickening of the pace of change in the accommodation and living sectors and a blurring of lines between different concepts.

Hotels

  • Established hotels are repositioning their offering to meet new consumer demands
  • They are throwing away old fashioned hospitality norms and actively catering to guests needs
  • The experiential approach to hospitality is forcing hotels to incorporate more innovative F&B and wellness into the fabric of the hotel
  • Hotels are incorporating new concepts into their offering such as co-working and extended stay options to meet the needs of today’s travelers
  • Hotels are expanding into secondary and tertiary cities that have traditionally lacked hospitality options

Serviced Accommodation

  • The lines between a hotel stay, a serviced apartment and traditional apartment living are blurring
  • One of the fastest growing areas of the hotel/accommodation sector
  • As we travel more, and for longer periods of time, for work and leisure, we require more accommodation options
  • Serviced apartments fill the gap between hotels and traditional apartment living
  • Consumers are outsourcing the management of accommodation to those that do it better, the hospitality companies
  • Ties into the concept of the “hospitalization of real estate”
  • More design led offerings are being demanded in this sector

Build-to-Rent and PBSA

  • BTR and PBSA are similar products but appeal to different market segments. Both cater to an upwardly mobile clientele
  • PBSA provides low cost, but well designed and serviced accommodation for students near university centres
  • BTR fills the housing gap after university but before home ownership, offering professionally managed accommodation
  • Both concepts offer residents professional management, flexible terms, and hotel-like amenities
  • The lack of quality affordable housing near city centres continues to be a problem in most markets

Co-working/Co-living/Hostels

  • As the transient nature of our lives continues to increase new accommodation concepts are emerging
  • Co-working, co-living and hostels are growing in tandem with the growth in population mobility
  • Co-working and co-living are part of the trend of having experts manage your office space and residence, rather than doing it yourself
  • Hostels appeal to the community needs of a new generation of consumers that is increasingly becoming isolated with the use of social media
  • The growth of co-working, co-living, and hostels is about a fundamental change in the way we live and work today versus years past

The Investors    

PDC maintain on-going close relationships with accommodation investors worldwide, keeping them abreast of changes and trends we are seeing in the sector, offering opinion, insight and opportunities. The accommodation theme is one that is present across most investor segments.

Private Equity

  • Will have a shorter investment horizon
  • Open to opco and/or propco investments
  • Looking for a differentiated concept
  • Require a proven business model
  • Deploy to concepts that are scalable
  • Bring sector expertise and managerial experience
  • Prefer multiple exit options

Institutional Capital

  • Long-term buyers
  • Includes sovereign wealth funds, endowments, family offices, pension funds, and insurance companies
  • Will invest across core, core-plus, value-added and opportunistic assets
  • Becoming more flexible in their investment approach
  • Willing to support new brands
  • May be willing to take development risk

Strategic Buyers

  • Long-term buyers
  • Have a lower cost of capital
  • Typically investing as part of a larger strategy
  • Open to opco and/or propco investments
  • May be looking to augment an existing business and gain scale

PDC Advisors Ltd.

79 New Cavendish Street
London
W1W 6XB

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