R&R Partners advises foreign investors on acquisition in hospitality field
The Podstel project, which first started with the acquisition of Teahouse Five Hostel, has recently extended with the Umbrella hostel in downtown Bucharest.
Buyers have declared that the business model applied for Teahouse Five – Podstel has proven to be a great success. So the next natural move was to acquire more locations to convert and apply their expertise to. The project represents more than quality accommodation and facilities to foreigners who want to have a taste of the real Romania, but is also a combination of cultural and social events, support for the local community through a non-profit and also creating an international community of like-minded individuals.
Ruxandra Visoiu, project manager in the Umbrella acquisition, declares: “Because it was a share deal, not a simple acquisition of assets, the project had multiple factors involved. When you buy an entire business, with its good and its bad, the due diligence process is very important. You must know not only the company’s financial standing, but also aspects regarding the company’s general ‘health’ – employees, authorizations, inventory, fiscal matters and the list can go on, depending on the business itself.”
But it is not just about figures and legal drafting. “The Romanian hospitality field is an interesting industry, with great opportunities for foreign investment. Nowadays, offering tourists just the classic bed & breakfast does nothing to differentiate you from the competition. Especially our generation, the so called “Millennials”, are looking for a lot more than that: a sense of connection, new experiences and meeting new people. Even feeling that, at least for a few days or weeks, they are part of a different world. That is hospitality taken to a whole new level and maybe the future of this industry itself”, says Ruxandra Visoiu.
R&R Partners Bucharest is a Romanian law firm specialized in litigation, immigration and business law