Inside the Deal Room: What Makes a Leisure Asset Truly Investment-Grade

Ali Tolóikahn, Managing Director, Soren Hudson International

Not all leisure assets are created equal.

In a market saturated with listings, many dressed in glossy brochures but short on fundamentals—discerning investors are looking for more than aesthetic appeal. They’re seeking long-term value, resilience, and strategic upside. At Soren Hudson International, we evaluate every opportunity through a rigorous lens shaped by experience, market insight, and investor expectations.

So what transforms a leisure or hospitality property into a truly investment-grade asset?

1. Location, Yes, but Context Matters More

Everyone knows location matters. But we look beyond geography to understand context.

Is the asset embedded in a high-growth tourism corridor? Is it adjacent to infrastructure investments or evolving demographics that suggest future upside? Is the brand aligned with the destination’s trajectory?

For example, a resort 30 minutes outside a capital city might outperform a city-centre property if it sits within a luxury corridor attracting long-stay visitors and wellness-driven demand. Context is key.

2. Operational Resilience

Strong leisure assets aren’t just beautiful, they perform. We focus heavily on operational fundamentals:

• Year-round demand drivers (not just seasonal spikes)
  
• Diverse revenue streams (hospitality, golf, F&B, wellness, events)
  
• Clean cost structures and upside through repositioning or branding
  

We also assess whether the current operator is extracting full value—or whether the right investor could unlock significant gains through strategic enhancements.

3. Expandability and Repositioning Potential

True investment-grade assets often come with room to grow, whether physically, through additional keys or villas, or strategically, via repositioning.

We look for:

• Planning flexibility or zoning upside
• Undervalued branding or operator partnerships
• Potential for high-margin amenities like wellness, private membership, or branded residences
  

If the asset is currently underutilised but has structural potential, that’s a signal worth exploring.

4. Clean Deal Structures and Ownership Clarity

No matter how compelling the asset, an unclear title or encumbered ownership derails investor appetite. We perform early legal and structural diligence to ensure that what’s being offered aligns with what can be transacted—discreetly, cleanly, and at pace.

Sellers who come prepared with clarity, data, and professionalism always command stronger interest.

5. Strategic Fit with Investor Mandates

Not every excellent asset is a fit for every buyer. Part of our job is ensuring alignment between the seller’s offering and the buyer’s appetite, whether that’s for scale, turnaround potential, trophy positioning, or cross-border diversification.

This is where Soren Hudson plays a critical role: not just curating great deals but placing them in the hands of the right capital at the right time.

Why This Matters for Sellers

If you’re considering bringing a leisure asset to market, be it a resort, golf estate, or destination development, understanding how investors think is crucial. Working with an advisor who speaks both languages is what gets you in front of serious buyers and ensures your deal is presented in the strongest light.