Real Estate
by Matteo Corsini
In international hospitality real estate — particularly in the upper-upscale and luxury segment — the central issue is not the fee percentage.
The real issue is the calculation base.
Anyone who does not understand this distinction has not understood the essence of international advisory.
1. Enterprise Value: The True Economic Perimeter
In global markets, we do not reason in terms of “property price” alone.
We reason in terms of Enterprise Value (EV).
Enterprise Value represents:
the full economic value of the asset under optimized market conditions
its forward-looking EBITDA-generating capacity
its growth potential under international branding
the integration between real estate value (PropCo) and operating value (OpCo)
For a luxury asset positioned in a primary gateway city, EV incorporates:
international comparables (Europe / US / Asia)
market benchmarks (ADR, RevPAR, occupancy)
projected yield under a branded operator
institutional appetite (core+, value-add, operator-led platforms)
The calculation base is therefore not arbitrary.
It is the outcome of technical, comparative, and strategic structuring.
2. Why Fees Are Calculated on Enterprise Value
International advisory firms — in London, New York, Paris, Singapore — calculate their fees on:
Enterprise Value or Transaction Value
Because an advisor does not sell square meters.
An advisor builds value.
The activities that generate Enterprise Value include:
strategic repositioning
global operator research
international market sounding
engagement with brands and institutional investors
structuring alternative operational scenarios
drafting and negotiating NDAs and term sheets
technical and financial coordination
The value created is dynamic.
If, through advisory work, an asset transitions from a local valuation framework to an international valuation framework, the delta represents the value created.
And that delta justifies the calculation base.
3. The Logic of the Milestone Advisory Fee
In the €50–100 million transaction range, advisory fees internationally tend to fall between:
0.5%
0.75%
1.0%
depending on complexity and scope.
Such a fee is not a brokerage commission.
It is a milestone advisory fee, compensating for:
activation of a global network
positioning before international decision-makers
structuring of competitive processes
access to capital pools not reachable through local channels
The advisor is remunerated not for introducing a name,
but for engineering a market.
4. International Network: The Value Multiplier
An international advisor does not operate territorially.
He operates relationally — across markets.
Activating dozens of counterparties among:
global hospitality brands
institutional real estate funds
sovereign-linked platforms
cross-border operators
private capital structures
creates competitive tension.
Competition transforms theoretical valuation into executable value.
Without competition, pricing remains local.
With competition, pricing becomes international.
5. Brokerage vs. Advisory: A Structural Distinction
Over the course of my career — from real estate to M&A — I have observed a fundamental structural difference:
Traditional BrokerageInternational AdvisoryFinds a buyerCreates a marketFocuses on propertyFocuses on enterpriseEarns commissionEngineers valuationExecutes transactionDesigns value architecture
An advisor does not merely intermediate.
He structures.
He does not simply close deals.
He builds frameworks within which value can expand.
Conclusion
The local market values what exists.
The international market values what can exist.
Enterprise Value captures that transformation.
The international advisor’s fee is not a percentage of a building.
It is a percentage of structured potential — crystallized into institutional value.
In real estate, as in M&A,
value is not measured.
It is built.
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