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Auctions, NPLs & Conversions Division

The best hotel opportunities aren't for sale.

They are hidden among judicial auctions, public-property tenders and non-performing loans. You acquire them with due diligence that traditional brokers can't do.

Advisory to acquire hotels through auctions, public tenders and NPLs. You pay stage by stage, not on outcome. For developers, investors and builders.

Request the pre-feasibility studyHow we work
Where the margin comes from

Value is created before the auction

Alongside the open market there is a less visible world: judicial auctions, public-asset disposal tenders (state property, municipalities, ministries) and NPLs — non-performing loans secured by real estate and companies. Little information, high complexity: that is exactly why the best margins go to those who move in a structured way.

But the largest margin is not at the auction: it comes before. A property reaches the court at the end of a long path, and along that path there is a window in which it can still be negotiated.

Before the auction order — you negotiateAfter — you only compete
Stage 1
Loan in default
The bank no longer collects. The loan is secured by a property or a company.
Stage 2
Sold to an NPL servicer
The loan moves to specialised servicers (e.g. Prelios, Intrum) that want to monetise.
Stage 3 · window
Debt settlement
Here you negotiate: a settlement figure agreed with the receiver and the owner, before the court.
Auction order
Then
First auction
Bids from 75% of the base price. Now a public asset: no longer privately negotiable.
Then
Further auctions
A reduction of up to a quarter after each failed round, until the award.

The auction order is the red line: beyond it the court makes the asset public and private negotiation is no longer possible. You only compete — bids start at 75% of the base price, with reductions of up to a quarter after each failed round. This is where timing is worth as much as price, and it is why we step in before the others.

10%
Deposit, typically 10% of the bid
from 75%
Minimum bid on the court's base price
−25%
Reduction of up to one quarter
0
Guarantees on encumbrances: they pass to the buyer

Opportunities come from four different sources, and only some leave room to negotiate:

SourceWhat it isNegotiable?Value lever
Judicial auctionHospitality property put up for auction by the court.No — bid onlyLow entry price, if encumbrances are under control
Public tenderFormer barracks, convents, buildings of bodies and ministries being sold off.Formal procedureHospitality conversion of undervalued public property
NPL / distressed loanDefaulted loan secured by a property or company.Yes, before the auctionDebt settlement with real negotiating room
ConversionBuildings or hotels to transform (condo-hotel, mixed-use, residential).Private negotiationCapital gain from change of use and repositioning
The method

Four stages, and after each one you decide

We don't ask you to commit to the whole operation. Every stage ends with a document in your hands — figures, checks, strategy — and with a decision that stays yours: go on, or stop. You never pay for an outcome no one can guarantee: if the pre-feasibility study says the deal doesn't stand up, we tell you straight away, before you have committed more time and more money.

01

Pre-feasibility study

With data we check whether the deal stands up: hospitality potential, property-value/income ratio, sustainability. We tell you, numbers in hand, whether to proceed or stop.

Then you decide
02

Reconstruction and due diligence

Where data is minimal, we reconstruct the picture: identity of the property, encumbrances, registrations, legal and cadastral status. This is where you avoid buying blind.

Then you decide
03

Dossier and strategy

Business plan, auction bidding strategy or tender application, map of the key figures: receivers, custodians, credit servicers to contact.

Then you decide
04

Award and launch

We support you up to the award and, if you wish, to the launch or to finding who will run the property.

We stay to the end

If you would rather hand us the whole path, from the study to the launch, the full package costs less than the sum of the single stages — and it is still paid by milestones, never in advance of the result.

What you get

What stays in your hands

Pre-feasibility study with numbers
Due diligence on encumbrances and titles
Business plan for operation or conversion
Bidding strategy or tender application
Map of key contacts (receivers, servicers)
Support up to the award
The principle of conversion

Buy the walls, not the goodwill

A well-located building converted into a condo-hotel starts from the walls and builds value day by day: no goodwill to pay for, all capital gain to create.
If this is your kind of deal

Builders, investors and developers

If you buy to develop — acquire, refurbish, reposition, resell or put to income — this service is built for you: medium-to-long-term deals, complex and high in potential, where vertical hospitality expertise lowers your risk and gets you to the value sooner. If instead you run a single hotel, this is most likely not the service you need — and we will tell you so straight away.

Talk to an advisor

Request a confidential consultation

Have you spotted an auction, an NPL or a property to convert? Tell us about the deal: we start with a pre-feasibility study that tells you, with the numbers in hand, whether it is worth proceeding.

FAQ

Frequently asked questions

What does KW Hospitality's advisory offer for hotel auctions?
We support you at every stage of the acquisition, through a judicial auction, a public tender or an NPL: pre-feasibility, reconstruction of the information, due diligence on encumbrances, dossier and bidding strategy, assistance up to the award and the launch.
How much does advisory to buy a hotel at auction cost?
You pay one stage at a time — pre-feasibility, dossier, application, assistance — regardless of the final result. The full package costs less than the sum of the single stages. The quote is built around your deal.
What is the difference between buying at auction and negotiating an NPL?
At auction you buy through the court and without guarantees: the encumbrances stay with you. With an NPL that has not yet reached court you can negotiate a settlement before the auction, with more room. The auction order is the line beyond which there is no negotiating.
Which properties are worth converting?
What decides it is the ratio between property value and the hospitality potential of the area: a well-located building in Milan, Rome or Florence can become a profitable condo-hotel, while a hotel in a saturated area is often worth converting into residential or mixed use.
Who is this service for?
For those who buy to develop: builders, investors and developers who acquire, add value and then resell or put to income. If you run a single hotel, this is most likely not the service you need.
Do you guarantee winning the auction?
No — and be wary of anyone who promises it: the outcome depends on the other bids and on factors outside our control. What we do guarantee is the method — complete due diligence, a dossier and a bidding strategy — which turns a gamble into an informed decision.
Is KW Hospitality a law firm or a real-estate agency?
Neither. We are vertical hospitality advisors: we work alongside lawyers, receivers and notaries, who handle the deeds within their remit, and we bring due diligence on encumbrances, strategy and a reading of the hospitality potential.