Hotel Underwriting: the case of Hotel Sun Palace Albir & Spa shows how to turn assets with potential into profitable investments.

29 Oct, 2025 - Sin categoría

What is hotel underwriting? The case of Hotel Sun Palace Albir & Spa demonstrates how to turn assets with potential into profitable investments.

Investing in the hotel sector is highly attractive, but the crucial difference between a highly profitable investment and one that is less so often lies in the precision of prior analysis: a technical, operational, and financial underwriting service that enables owners and investors to make informed decisions, maximize the real performance of the asset, and determine whether to divest, renovate, or reposition. Based on this underwriting, whether through direct management or asset management, commercial, operational, and cost-control improvements can be implemented to enhance the return on investment.

The recent case of Hotel Sun Palace Albir & Spa illustrates how, at GAT Hospitality, we apply this approach with visible and measurable results.

Last July, GAT Hospitality was selected to take over the management of Hotel Sun Palace Albir & Spa following a comprehensive hotel underwriting process covering multiple critical areas. Key points analyzed included:

  • Technical-operational: Strengths and areas for improvement of the hotel, including the condition of equipment, facilities, and human capital. This involved assessing staff size and structure, as well as how their capabilities could impact service.

  • Administrative: A detailed report on the current status of the asset, including hidden liabilities, previous financial performance, regulatory risks, compliance with local regulations, and obligations to suppliers or other stakeholders.

  • Actual profitability: This analysis estimates whether the investment effort translates into higher operational revenues, improved margins, stronger brand positioning, and identifies the necessary CAPEX to enhance the hotel’s positioning.

Thanks to this underwriting, a detailed management strategy was developed, allowing the identification of urgent interventions and service improvements to prevent further deterioration and future overcosts, as well as evaluating which renovations or operational optimizations would generate sufficient returns to ensure investment profitability.

In the case of Sun Palace Albir & Spa, the underwriting led to:

  • A clear strategy to reposition the hotel as a benchmark for wellness on the Costa Blanca.

  • Definition of priority investments, both in infrastructure and services, to enhance the visitor experience.

  • An operational plan integrating technical, operational, commercial, and marketing improvements to raise the hotel’s competitive level.

The Sun Palace Albir & Spa case demonstrates that underwriting is not merely a formality, but a strategic tool capable of making a real difference in any hotel operation.

At GAT Hospitality, we apply this method systematically across all our projects, convinced that only through rigorous analysis can a hotel with potential be transformed into a truly profitable investment.

 

 

 WE KNOW HOW.