By: Jastine Beatrice Yap

Farazad Advisory GmbH is not focused on acquiring hotels for sheer volume. They strategically target underperforming assets in select seasonal markets, aiming to convert them into more consistent income-generating properties through capital discipline, brand intelligence, and a factor often overlooked by others: partnering with local sellers. These sellers are not sidelined; rather, they are retained, given minority stakes, and involved as regional sponsors with operational input.

The result is a hospitality portfolio that strives to respect the unique characteristics of each destination while working towards stronger average daily rates and year-round occupancy. It is a model that seeks to avoid the limitations of generic roll-ups and instead embraces the complexity of regional behavior, climate, and culture. From ski towns to coastal enclaves, Farazad Advisory GmbH suggests that brand equity and local knowledge can often be a more effective strategy than simply pursuing volume acquisition.

Seasonal Hotels Repositioned for More Consistent Revenue

Across Europe and parts of the Middle East, hotels have historically relied on the influx of guests during narrow windows—such as summer, winter holidays, and school breaks—to generate most of their revenue. The rest of the year, operators face a quieter period. Farazad Advisory GmbH aims to disrupt this pattern.

The team’s first move is rarely a physical renovation. Instead, they study market behavior and the insights from current owners. They look at what draws guests, when they tend to return, and what patterns have evolved over the years. From there, Farazad introduces brand upgrades, adjusts booking strategies, and explores ways to attract a broader range of audiences, helping smooth out the revenue fluctuations.

In one coastal destination, where August had traditionally accounted for more than half of the annual revenue, Farazad’s repositioning helped shift bookings into the shoulder seasons. Events were planned for April, partnerships were established with local artisans, and room types were adjusted to cater to business travelers and domestic guests. The hotel gradually became a more stable regional hub rather than depending solely on holiday spikes.

Korosh Farazad, founder and chairman of the Farazad Group, remarked, “We don’t simply acquire hotels—we aim to build enduring hospitality ventures. Our mission is to encourage guests to return repeatedly. This requires a continuous effort to understand guest behavior, needs, and preferences during every stay. The goal is for each subsequent visit to offer an experience that builds on the last.”

These adjustments, informed by data and a keen understanding of local contexts, have contributed to improvements in both average daily rate and occupancy. Over time, this has added resilience and value at the portfolio level, especially in regions affected by shifting travel patterns or climate challenges.

Retaining Sellers as Sponsors

It could be tempting to remove a hotel’s former owner once a deal is closed. However, Farazad Advisory GmbH takes a different approach. They retain these owners as minority shareholders and elevate them into advisory roles, which come with both equity and purpose. These sellers become trusted partners, guiding decisions based on their local expertise and longstanding relationships.

These local sponsors participate in strategic planning, help refine the guest experience, and serve as key figures in maintaining the hotel’s newly enhanced brand identity. In return, they benefit from the financial upside generated by Farazad’s capital structuring, brand positioning, and global distribution connections.

This model helps reduce friction. Rather than viewing new ownership as an outsider’s intrusion, the community recognizes familiar figures at the helm. Additionally, staff retention tends to improve when leadership reflects local values, and decisions are made by people who truly understand the area.

“Legacy has value,” said Farazad. “We don’t seek to replace it. We build upon it—by introducing smarter systems, more strategic booking cycles, and a brand that aligns with its premium positioning.”

This model can also improve regulatory cooperation. Local authorities are often more inclined to work with owners who understand the region’s social and environmental dynamics. In many instances, Farazad Advisory’s approach has opened doors for expansion and zoning flexibility that other acquisition strategies might not have been able to secure.

Brand Identity as an Asset

Each hotel in the portfolio receives its own tailored branding strategy. There is no one-size-fits-all approach. One property might emphasize wellness and architectural heritage, while another may adopt a more design-forward concept inspired by regional craftsmanship. The objective is to establish a clear, distinct identity, rather than a formulaic, replicated concept.

This brand-first approach offers benefits beyond aesthetics. It helps increase direct bookings, makes the property more adaptable in terms of pricing, and improves customer loyalty. Guests know exactly what to expect. More importantly, travel agents, corporate clients, and destination marketing boards gain clarity on the identity of the hotel as well.

Once a hotel’s public identity aligns with its guest experience, performance tends to improve across various metrics. Staff take pride in the property, guest reviews become sharper, and ancillary revenue—from dining to retail and events—becomes more predictable.

These aren’t hypothetical benefits; they are tangible results. Properties that have joined the Farazad portfolio in the past two years are reporting improvements in net operating income, with margins that are drawing attention from larger capital allocators. Several of these deals are already being revisited for potential expansion or the inclusion of additional assets.

This is not a strategy focused on short-term gains. It is built on the principles of long-term sustainability, anchored in place, and led by experienced professionals. As the hospitality industry continues to face volatility and consolidation, this more thoughtful, balanced approach might prove to be a more sustainable path forward.

Disclaimer: The information in this article is for general informational purposes only and do not constitute legal or financial advice. Readers should seek professional advice for specific concerns.