CONVERSION STRATEGIEs

ROD Hotels has had a long-standing, collaborative relationship with ROD Development, to assist our clients turn unprofitable portfolios into different businesses that will fill a gap in the market that is caused by factors such as the pandemic, economic crashes and so on.

A hotel that was converted into a senior care home as the fall in tourism in the region had a huge effect on the business. The strategy of the repurposed model was to turn the rooms into long-term occupied beds that will stabilize the income and minimize the fixed cost.

STRUGGLING ASSETS

Many clients with underperforming and cost heavy assets, or assets that lack the management that leads to successful exploitation of the business, have chosen ROD Investments when they needed reliable partners. We believe our teams are masterful in solving a wide range of regulatory hiccups as well as refining business models even the ones that are held back by above board or KPI constraints. Hotels can be converted into a revenue generator such as a high yield senior housing facility or apartments, dormant office properties can be converted into hotels and warehouses for retail.

Our clients can benefit from the level of expertise unlocked by our ROD team specialised in repurposings by collaborating with our stand-alone, yet synergy-rich divisions i.e. ROD Seniors, ROD Medical, ROD M&A and many other divisions. A couple of such examples that prove we walk the walk too is where we converted a Hotel into Senior Home in a prominent location all while pulling in resources from other divisions to maintain and even improve all the ROCEs.

UNEXPECTED DOWNTURN AND THEIR ‘BUSINESS’ EFFECTS

Economic conditions and factors destabilizing it are directly connected to the development business of any kind. Our clients that have experienced a significant downturn on developments that were built for specific purposes i.e. Hotels, restaurants, and retail spaces, have benefited from our team’s practiced conversion strategy implementation.

Instances that can cause immediate and unlikely ups and downs in consumer demand, such as COVID – 19 pandemic, leave a long-lasting change in consumer behaviour. Therefore, we strive to safeguard our clients who want to convert their Hotels into other businesses, and vice-versa with a deployable, well- thought-out repurposing strategy to navigate the unknown.

Our analytically sound team at ROD Hotels, follows an approach where they merge various economic data with trends in industries to funnel down the scenarios and of course, recommend the best conversion strategies for our clients.

HELPING CLIENTS SEE A LONG-TERM VIEW OF ASSETS UNDER DEVELOPMENT

Real estate projects while under development either to turn into hotels or the opposite, offer a wide variety of options of conversion but a minor error can sometimes cause piling up of undeniable costs in terms of money and time at the time of further conversion to the property.

We comb through the haystack and evaluate all the regulatory, technical or financial and other aspects of development and document the details for our clients and form a strategy to uplift the economic returns/yield on the project.

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