Advice turned into specific decisions and outcomes
The case studies below show how Bess Realty Group turns advice into specific decisions and outcomes for our clients.
Boutique hotel repositioning, Lake Como
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A private investment group was assessing the purchase of a 32-room boutique hotel on the western shore of Lake Como, priced at approximately €19.5 million. The brief was to test whether the asset could support a repositioning into the upper-upscale segment, with particular attention to seasonality and the capital required to bring the property in line with guest expectations for the market.
The Bess Realty Group team undertook a detailed review of local tourism data and comparable properties, focusing on occupancy patterns and average daily rate across a three-year period. Regional benchmarks showed stabilised occupancies in the 68 to 74 percent range and ADRs for comparable lakeside hotels between €420 and €520 in peak months, providing a useful frame of reference for underwriting potential performance. Our analysis suggested that, with targeted refurbishment and a repositioned F&B offering, the subject property could move from a current ADR of roughly €280 and annual occupancy of 55 percent to a medium-term target of €380 ADR and 65 percent occupancy, implying an uplift in gross operating profit of approximately 35 percent over a five-year horizon.
The repositioning plan proposed a phased €4.2 million capex programme focused on guest rooms and public areas. We modelled multiple phasing scenarios to manage disruption, recommending a two-winter-cycle approach that preserved peak-season trading and limited annual room-out-of-service days to under 15 percent. The work also highlighted specific cost-saving opportunities in energy and staffing, with an estimated 8 to 10 percent reduction in annual operating expenses once initiatives were fully implemented.
Throughout the acquisition process, we supported the client in negotiations by testing pricing assumptions and reviewing vendor business plans, and by refining sensitivity analyses for key risk factors such as air connectivity and regulatory changes. The client ultimately agreed terms at a 7 percent discount to initial guidance, structured with a modest earn-out tied to post-renovation performance. Our final output included a concise investment memo and a five-year financial model, together with an implementation roadmap that could be handed directly to the chosen operator.
Mixed-use corner building, Berlin
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Bess Realty Group was approached by an operating partner seeking capital for the acquisition of a mixed-use corner building in a central Berlin district. The existing income profile was stable but under-rented, with fragmented leases and limited active management. The opportunity lay in improving the tenant mix and regularising leases, with selective upgrades to common areas to reflect local demand for better quality space.
After completing underwriting and market work, we committed capital alongside the operating partner, with a minority equity position and governance rights through the investment committee. Our analysis supported a business plan focused on lease restructuring and targeted capex, with rental reversion paced over a five-year period and limited reliance on speculative assumptions.
During the first three years of ownership, headline rents across the residential units increased by approximately 14 percent on relet space, while retail tenants were consolidated around a smaller number of stronger covenants. Operating expenses were reduced through more disciplined service charge recovery and procurement. As of the latest review point, net operating income had risen by roughly 18 percent compared with acquisition, with further upside identified through selective unit refurbishments.
Our involvement combined capital with advisory input at key decision points and a structured review of performance. The investment continues to be held, with exit timing to be considered once the main elements of the business plan have been delivered.
14-unit residential portfolio, Madrid
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A family office was evaluating a portfolio of 14 residential units across three central districts of Madrid as part of a long-term income and wealth preservation strategy. The asking price for the portfolio was €7.8 million, with current in-place rents that appeared broadly in line with market, but with limited documentation and no consolidated business plan.
Our first step was to map the portfolio unit by unit, covering micro-location, building quality, unit layouts, and existing lease structures. Using recent transaction and rental data for central Madrid, we benchmarked current rents against market levels, where typical gross yields for similar stock ranged from 3.5 to 4.5 percent. Our work indicated that, through modest refurbishment and a shift towards medium-long leases in certain buildings, the portfolio could move from an estimated gross yield of 3.6 percent at acquisition to around 4.4 percent over three years, with a stabilised net yield of roughly 3.2 percent after operating costs and reserves.
We then built a 10-year cash flow model for the portfolio, layering in realistic assumptions for vacancy and rent indexation. Scenario analysis covered different acquisition price points and levels of gearing, and tested a range of exit yields. Under the agreed purchase price and a conservative financing structure, our base case projected an ungeared IRR of 5.8 percent, rising to 7.2 percent in an upside case that assumed slightly stronger rental growth in the most central district. These projections were cross-checked against published data on Madrid’s historical and forecast rental growth to ensure that assumptions remained grounded.
The final advice to the client distinguished between stronger and weaker components of the portfolio, recommending that two units with structurally weaker layouts and sub-par building fundamentals be excluded from the acquisition. This adjustment lowered the total ticket size to approximately €6.9 million but improved the projected stabilised yield profile and reduced operational complexity. We provided a clear acquisition strategy, including staggered refurbishment priorities and target rent ranges by unit, together with performance indicators to track during the first three years of ownership.
Off-market boutique hotel, Swiss Alps
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Bess Realty Group identified an off-market opportunity to acquire a family-owned boutique hotel in an established Alpine resort. The property suffered from dated interiors and limited digital reach but benefited from a strong micro-location close to ski lifts and year-round amenities. Initial vendor expectations implied a yield below levels justified by current performance.
Following direct negotiations and detailed underwriting, we acquired the asset alongside a small group of aligned co-investors, acting as lead investor and asset manager. The agreed plan involved a phased refurbishment of guest rooms and public areas over two low seasons, together with a repositioning of the F&B offer and an overhaul of online distribution.
Within three winter seasons, average daily rate increased by approximately 22 percent and annual occupancy improved from the mid-50 percent range to the low-60s, despite one softer season for the wider resort. Operating margins expanded through tighter cost control and better labour planning. On this basis, the most recent external valuation indicated an uplift in value of around 17 percent compared with acquisition, net of invested capex.
We continue to oversee the asset plan and capital structure, with options under review that include a refinancing or partial exit once the business has fully stabilised at its new level of performance.
Prime residential acquisition, Lisbon
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A private client was exploring the purchase of a prime residential property in Lisbon, with a budget in the €2.5 to €3.5 million range. The client's objectives combined lifestyle use for part of the year and capital protection over time, with the option to generate rental income during periods of absence.
Bess Realty Group began with a structured review of Lisbon's prime neighbourhoods, focusing on central and coastal locations frequently sought by international buyers. Recent market data showed that prime values in Lisbon had risen between roughly 2.5 and 4.5 percent over the previous year, placing the city among the stronger performers in Europe's high-end segment. Within this context, we compared pricing and depth of demand across three shortlisted areas, highlighting where supply constraints and planned infrastructure were likely to support future growth.
From there, we developed a clear investment brief that translated the client's preferences into concrete property criteria, including minimum internal area, outdoor space, parking, and building condition. Using recent transaction evidence and listings data, we estimated that a well-located apartment meeting the brief would typically command a price between €9,500 and €12,500 per square metre, depending on exact micro-location and specification. Our analysis suggested that, if held for a 7 to 10-year period, such an asset could plausibly deliver blended annual returns in the 4 to 6 percent range when combining moderate capital growth with seasonal rental income.
We also examined regulatory and tax considerations relevant to non-resident buyers, mapping how different ownership structures and financing options would affect net returns. A simple, illustrative rental scenario indicated that short to medium-term lets during four to five months of the year could generate a gross yield of around 3 percent. We stress-tested these assumptions against conservative downside cases to give the client comfort on resilience.
The project concluded with a tailored investment strategy document and a shortlist of property profiles, each accompanied by location notes, pricing guidance and key diligence questions. This allowed the client and their local broker to progress quickly once suitable opportunities appeared, with a defined framework for evaluating trade-offs between lifestyle attributes and financial performance.