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Our Capital-Raising Process
Debt or Equity

Investing in a hotel development project can be an incredibly lucrative venture for property investors, especially in Africa, which is experiencing exponential growth in tourism, driving demand for new quality accommodation options. However, buying and developing a hotel requires capital. Raising debt or equity capital can be one of the biggest challenges for any hotel or resort development project. We have a strong track record in capital raising and can support you with all necessary services to optimize your prospects of closing the finance you require for a new development, an acquisition, refurbishment, or redevelopment.

Mobilization & Due-diligence

We run each project through detailed due diligence prior to onboarding to ensure that it meets the minimum requirements of our financing partners.

 

This ensures our success during the capital raising process. We also prepare various projects for capital raising if they do not meet the minimum threshold in ROI, Risk, Exposure, Scalability, IRR, and Exit Strategy. Our focus is to ensure that we onboard projects that have achieved the minimum 95% readiness score on our risk assessment.

Brand Operator Selection

Our Operator Selection services assist owners in selecting a suitable brand & operator whose objectives are best aligned with the owner’s goals for a proposed or existing property. The selection process begins with an information memorandum distributed to shortlisted operators for screening, negotiation of LOI/MOU, signing of the LOI/MOU with the preferred operator party, and contract negotiations with the owner’s legal counsel to safeguard fair partnership terms that optimize financial returns for the hotel.

Feasibility & Financials

We provides you with a market-led, comprehensive, and detailed hotel feasibility study, including a thorough investigation of the project’s financial requirements and rate of return on investment. Our end result is a detailed report that looks at the macro and micro socio-economic review, hotel market supply and performance, demand generators and gaps in the market which fine-tunes ur development brief for the coast of the project. This has become a minimum requirement for any capital raising for both debt and equity. 

Financing Negotiations (LOI/HOT)

The updated documents are sent to our funding partners, who will, in turn, raise a letter of interest (LOI) outlining the financing heads of terms (HOT), leading into Negotiating the Financing agreement to secure the best terms and interest rates, which is a critical stage in the project cycle and implementation, as this process has implications for all facets of the project.

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We ensure that our clients' best interests are protected during the negotiation process.

IM, IBP & BOV

Our team works on developing and designing the relevant documents required for the capital-raising process in line with the RICS standards, guidance, and qualifications that international financiers and PEF require. The Investor Memorandum, Investors Briefing Pack, and the project valuation or Brokers Opinion of Value are clear guidelines for assessing the value of the project to ascertain the financier's interest. These are developed from the financial projections from the feasibility report.

Financing Agreement/MOU Sign-Off

Working jointly with the client's legal team and our funding partners, we shall develop the relevant Financing Agreement for debt or a JV MOU for equity for both parties to review and sign off. This will be based on the agreed-upon LOI and HOT by both parties. Emphasis is placed on ensuring remedial action in case of default or breach to protect our client's interests. Wen ensure that our clients best interests are protected including a well planned exit strategy with the aim t maximize ROI.

Connect with Ankara & Lustar

Are you stuck with your hotel development project and need funding? We can assist you in securing senior debt or a mezzanine facility with suitable terms, a moratorium, and low interest rates to finish your project or the right equity partner for your long-term hotel investments.

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Get in touch with us today!

East Africa Office:

14th Floor, Global Trade Centre (GTC Towers) 

Waiyaki Way, Chiromo Lane Intersection
Westlands, Nairobi, 
KENYA,

East African Community

Email: info@ankara-lustar.com

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West Africa Office:

3rd Floor, Masard Place, 927/928 Bishop Aboyade Cole St, Victoria Island, 106104

Lagos, NIGERIA

West Africa

Email: info@ankara-lustar.com

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© 2025 by Ankara & Lustar

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