INVESTMENT OPPORTUNITY
Unlocking Value Through Strategic Investment
Acquisition & Renovation of High-Growth Real Estate Opportunities
The Offering
We are ideally seeking an investment of £20m on an equity basis. Other options we are open to would include an equity participation of £10m and a debt buy-out of our current £10m in borrowing at 2.5-3% over base depending on LTV sought, or debt financing on individual renovation projects.
Investment Overview
£10m would go towards paying off existing debt. This would retain earnings within the business and reduce the overall risk. While we are seeking to get a commitment on £20m for now, we are ideally looking for a capital partner who would be able to support ongoing growth through a credit line besides the current injenction of capital. The unencumbered assets could then be provided as security to support further borrowing as and when required to support the projects outlined below.
Paymán Investments
Product Type: Real Estate
Fundraise: £20m
Valuation: £120m
Expected Return: 5.5x
Exit timeline: 5 years
Team
Highlights
- 68% Average Annual Asset Growth
- Proven Expertise & Scalable Operations
- Innovative Technology Driving Profitability
Mission Statement
Our mission at Paymán Investments is to transform underperforming properties into thriving, high-value assets through strategic acquisitions and cost-effective renovations. We are committed to revitalizing historic and sub-quality hotels, creating long-term value for our investors while delivering exceptional guest experiences and contributing positively to the communities we serve.
History & Timeline
Our Founder & CEO, Na’ím Anís Paymán, started working in restaurants and hotels as a teenager. While working in every aspect of the business from cleaning toilets, to gardening and maintenance, he came to know the ins and outs of how hospitality businesses operate, and always took a keen interest in contributing to improving processes and operational efficiency.
While studying at Cambridge University, he set up Paymán Club, as a serviced apartment management company, which later evolved into running a range of properties including hotels and wedding venues. Soon after setting up Paymán Club, it became clear that to grow the business sustainably, innovative tech would be required. As he was not able to find the level of automation he envisaged on the market, he set out to developing it himself. The aim was to manage properties through software, and to ultimately acquire properties and manage the whole lifecycle.
The growth of the software business and winning of various global accolades and awards coincided with the rapid spread of COVID-19. In this, Na’ím saw an opportunity to acquire hotels at a time when the market was extremely depressed due to the fear and anxiety about the future of the hospitality market. This marked the start of Paymán Investments.
Flagship Properties
We currently own 10 sites across the UK, and hold a lease with an option to buy on another one.
These range from modest 9-unit guesthouses, to luxury 43-unit hotels with a lot of historical significance.
Lovelady Shield Hotel
Alston, North Pennines
Located on the banks of the River Nent in the North Pennines, Lovelady Shield Hotel and Cottages is a Georgian country house offering 14 en-suite rooms, each designed to provide comfort and convenience while preserving the property’s historic character. The hotel is surrounded by three acres of gardens, providing a tranquil setting for guests. In addition to the hotel rooms, the property includes six self-catering cottages that offer a more private and flexible stay. The hotel also features a restaurant serving a variety of meals, and a coffee lounge that offers a relaxing space for drinks and light snacks, both ensuring a welcoming and peaceful atmosphere.
Minstrel Court
Whaddon, Cambridgeshire
An historic wedding and events venue located in Royston, Hertfordshire. The property features a beautiful setting with a 16th-century listed barn, 4 acres of manicured gardens, and a private lake. Currently operating as a licensed wedding venue, it already generates significant income from weddings and lettings. Minstrel Court offers a range of accommodation options including a Tudor manor, 7 apartments and 4 cottages. The recently renovated Manor is a luxurious five-bedroom house that can accommodate up to 19 guests. The accommodations offer all necessary amenities for a comfortable, short or extended stay. Limited parking is available on-site for guests.
Northop Hall Hotel
Mold, North Wales
A 38-room Victorian mansion set within over nine acres of serene gardens and woodland, this hotel is a top destination in North Wales. Reflecting the deep historical roots of the manor, it offers a tranquil retreat with well-appointed en-suite bedrooms that showcase stunning views of the Welsh countryside. Ideal for nature enthusiasts, it provides easy access to local flora, fauna, and walking trails. With a wedding licence application submitted, it’s set to become a premier venue for weddings and special events. Its historic charm and spacious surroundings make it an ideal location for weddings and large gatherings.
Proven Asset Growth
Strategic Asset Appreciation
Our portfolio showcases significant asset growth, driven by strategic acquisitions and value-add renovations. For instance, The Grand Hotel was acquired for £365,000 and is currently valued at £500,000, with a projected value of £2,500,000 in three years—representing a 585% projected increase. Lovelady Shield Cottages were purchased for £740,000 and are currently valued at £2,125,000, with a projected value of £6,000,000 in three years—a 711% increase.
Portfolio-Wide Growth
This growth trajectory is consistent across our portfolio, with properties like Minstrel Court purchased for £1,550,000 and expected to reach £8,000,000 in three years, a 416% increase. These figures validate our ability to unlock value through targeted investments and strategic enhancements. Another example is The Stromness Hotel, purchased for £330,000, is projected to be valued at £4,700,000 in three years—a 1,324% increase, underscoring the substantial upside potential of our approach.
Investment Opportunity
Hiring & Marketing
Funds for this would start being deployed immediately for team building, sales and marketing efforts. Senior hires would take place by Dec 2024, and we would seek to ramp up operations over the course of 2025. We would seek to hire a Head of Development, a UK-based Financial Director and a Chief HR Officer, alongside building a larger sales team and investing in marketing and advertising.
Refurbishments & Conversions
Given the listed status and historic importance of Royal Hotel Kettering and Stromness Hotel, grant funding may be available to cover part of the renovation costs. However, this would not be clear until further down the line, so we have not assumed any contribution from those for the time being.
Maycliffe Hotel
Torquay, Devon
Total capital raise: £20m
A 30-room hotel nestled in the scenic English Riviera, just a short walk from Torquay Seafront. The hotel offers a variety of ensuite rooms, including single, deluxe double, and twin options, with easy access to local beaches, attractions, and Agatha Christie’s historical sites. It features on-site parking and free Wi-Fi, making it a convenient base for exploring the charming coastal town of Torquay.
Investment Opportunity
The conversion of Maycliffe Hotel into a 30-unit aparthotel is ready to hit the ground, with a build team in place and all paperwork lined up. The hotel market in Torquay showed great promise when we first acquired this asset, however over time supply has increased, and the quality of our current offering is in adequate. Conversion to an aparthotel would vastly increase the quality of our offering, and move us out of the red ocean into the blue ocean, offering highly-sought self-catering units year around.
Royal Hotel Kettering
Kettering, Northamptonshire
Cost: £4m, Timeline: Jan 2025 - Aug 2026, End Product: Luxury 42-bedroom hotel, wedding vennue and conference centre
The Royal Hotel Kettering is a 43-bedroom hotel centrally located in Kettering. With over two centuries of history, this Grade II listed building has been a significant landmark in the town. The hotel offers a range of facilities, including a large events hall, a restaurant, a coffee shop, meeting rooms, and a substantial basement that was previously used as a nightclub.
Investment Opportunity
The renovation works at Royal Hotel Kettering, aim to turn it into a regional hub for weddings and conferences. Its strategic location in the heart of England, as well as its local interest, being located right on Market Place make it a property of great potential. Plans are currently being drawn up at full-speed following a complete strip-back of the property over the summer. A number of disused areas of the hotel would be brought back into use, ultimately offering 42 luxury bedrooms, a Gala Hall, restaurant, bistro café, lounge bar, spa, beauty centre, hotdesking space, two conference rooms, and a large disco in the basement to complement the wedding business.
The offering could be further extended by demolishing and constructing at the rear of the hotel, which is presented as an option further down alongside acquisition of neighbouring land.
The Stromness Hotel
Stromness, Orkney
Cost: £3m, Timeline: Oct 2025 - Apr 2026, End Product: Luxury 60-bedroom hotel/apart-hotel and large town-centre restaurant
A historic 42-room hotel established in 1901, located in the heart of Stromness, offering picturesque views of the Scapa Flow harbour. The hotel features an operating restaurant, modern amenities, and 5 staff rooms. It’s an ideal base for exploring Orkney’s rich heritage, including nearby landmarks like the Ring of Brodgar and Skara Brae.
Investment Opportunity
The Stromness Hotel has proven to have extremely high potential, as even in the state we purchased it in, where the room quality is not of a high standard, trading has been highly profitable. Besides a full renovation of the current stock, the proposed works would see the restaurant and reception being moved down to the disused ground-floor, and the first floor being converted into an additional 18 rooms. We would also seek to add kitchenettes to some of the units to enable profitable trading in the low season by attracting longer-term guests and reducing staffing costs.
Buffer & Minor works at other properties
Cost: £1m, Timeline: Oct 2024 - Oct 2025
We would be looking to continue improvements across the rest of our properties to help improve our offering and drive positive reviews.
At Minstrel Court we would look to build a new toilet block for events at Minstrel Court, develop a Secret Garden, and rebuild one of the existing lodges into a luxury honeymoon suite. This would allow us to host larger weddings (or two weddings in parallel) and add two USPs to drive more weddings.
Further Acquisitions
We would seek to deploy £6m of funds to acquire hotels and land at two of our most promising existing locations over the next 12 months, which would cost around £2m. We would seek to acquire a distressed asset for circa £1m (to be identified and negotiated once we are in funds), and the balance of £3m to renovate or convert some of the acquired assets.
A further £3m would be used to acquire one or two other assets, to be identified down there line.
The global hospitality industry is undergoing rapid change, with guests increasingly seeking high-quality experiences, seamless digital interactions, and sustainability in their accommodations. However, many traditional hotels and bed and breakfasts struggle to keep up with these demands. This gap has left a large portion of the market with properties that are failing to reach their potential, resulting in decreased occupancy rates, lower revenue, and, ultimately, diminished property values.
At the same time, there is a growing demand for innovative, efficiently run properties that can deliver exceptional guest experiences while operating profitably. These demands are driven by the rise of tech-savvy travelers, the increasing importance of online reviews, and the need for properties to be both operationally efficient and environmentally sustainable.
The market is rife with opportunities for those willing to invest in the transformation of underperforming assets. The key gaps include:
Technological Integration: Many properties lack the technological infrastructure necessary for efficient operations and enhanced guest experiences. This creates an opportunity to modernize these properties through the implementation of cutting-edge management systems and guest-facing technologies.
Refurbishment and Upgrading: A significant number of properties have not undergone necessary refurbishments to maintain competitiveness. By investing in strategic renovations, these properties can be repositioned in the market as attractive, high-value assets.
Operational Efficiency: Traditional management practices often result in high operational costs and inefficiencies. There is a clear market gap for properties that can be managed centrally and efficiently, reducing costs and increasing profitability.
The competitive landscape is divided between well-established hotel chains that dominate through scale and branding, and smaller, often independent properties that struggle to compete. While large hotel chains benefit from brand recognition and economies of scale, they often lack the flexibility to innovate rapidly. On the other hand, independent hotels, especially those underperforming, frequently lack the resources and expertise to implement necessary changes.
This competitive imbalance presents a significant opportunity for Paymán Investments. By focusing on acquiring and transforming underperforming properties, we can leverage our unique combination of industry expertise, technological innovation, and efficient management practices to reposition these assets in the market. Our approach enables us to offer a product that meets modern consumer demands, at a competitive price point, with operational efficiencies that traditional players struggle to match.
In summary, the market opportunity lies in the ability to transform underperforming assets into efficiently run, technologically advanced, and highly profitable properties. Paymán Investments is well-positioned to capitalize on this opportunity by addressing market gaps and setting a new standard in property management and refurbishment.
Stromness
Stromness has three main hotels. Our trading at The Stromness Hotel has shown huge potential, and so we would be interested in acquiring the other two hotels in town. They are owned by the same couple and have been for sale in Stromness for some time. Guide prices have been provided below, however these would be negotiated on at the time of putting an offer forward. Between them, the hotels offer 22 en-suite bedrooms with a further six en-suite rooms in the Harbourside House annex, which is currently leased.
The Ferry Inn
Guide Price: £750,000
The Royal Hotel (Stromness)
Guide Price: £550,000
Kettering
We would be seeking to obtain planning permission for a development on land already owned by us, alongside the land being sold as part of Westbury, and landlocked land owned by HSBC which is accessible through Westbury. The exact nature of the build would have to be decided following further assessments, however initial discussions with the council have indicated that they may be interested in long-leasing a custom-built accommodation block. Other options would include co-living quarters or an apart-hotel.
Westbury
Guide Price: £850,000
The property comprises two adjoining buildings known as Westbury and land at the rear of Royal Hotel Kettering. Previous planning permission has been provided for conversion of the houses to 6 residential units, and the construction of 4 additional units on the adjacent land.
Land-locked land
HSBC owns some land behind Westbury, which they are open to selling off-market, and we are currently in negotiations to find out what the lowest offer is that they would accept. We believe we would be able to obtain this for a bargain, and through acquiring Westbury, be able to release its true value. The land could potentially become part of the development, or be turned into outdoor gardens to increase the marketability of the wedding venue at the Royal Hotel.
Ownership Structure
Each asset is owned by an SPV, which are in turn owned by Paymán Investments Limited, a company based in Jersey (UK). Equity investors would acquire a stake in Paymán Investments Limited. Over the last 3 years, the investments made under Paymán Investments Limited have had an average YoY Growth of 68%. We are hoping to hit break-even on an operational basis in the current financial year, and achieve an EBITDA of £750k by Jun 2026, increasing to £1.7m by Jun 2027, following disposal of several assets that we feel are not promising and undertaking the renovations outlined above. Further acquisitions should allow us to exceed these figures once they become operational.
Portfolio Value
The current brick & mortars value of the portfolio is around £20m. Certain hotels which have already achieved profitability could have significantly higher valuations that their brick & mortar valuations.
The investment we are seeking is not based on the value of assets under management, but rather on the track record of asset growth, which has added £7m in value over the last year (backed up by RICS valuations). Using a multiple of 20, that yields a valuation of £140m. Projections indicate that in 5 years’ time, our annual growth rate would be £33m, yielding a valuation of £660m, a 5.5x increase.
Exit Strategy
Na’ím regards this business as his long-term retirement plan, and would therefore not necessarily be looking for an exit on his part, but would be open to exiting in 5-10 years should a good opportunity arise. Ideally, he would be looking to buy back the shares being sold now down the line, subject to selling his investments in other start-ups.
Robust Growth and Profitability Projections
Financial Performance & Projections
In the first 3 years, Na’ím focused on maximizing asset value amid challenges like Covid and inflation, achieving a 68% annual growth rate. He has since built a strong Executive team to improve guest experience, with Rachel joining to enhance product marketing. The immediate goal is profitability through renovations, team building, marketing, and tech innovations. By year two, the aim is a consistent 10% yield on property values, along with asset appreciation from acquisitions and refurbishments.
Growth on Existing Portfolio
– Current Asset Valuation: Our portfolio is currently valued at approximately £19,560,000, based on market assessments and recent purchases.
– Projected Asset Valuation: In three years, the total projected valuation of our assets is £41,450,000, reflecting our growth strategy and value enhancement plan.
Rationale in Asset Value Growth
Maycliffe
The Knighton
The Grand
Lovelady Shield
The Stromness
Northop Hall
Minstrel Court
Royal Hotel
Disposals
Maycliffe
Maycliffe Hotel is currently being converted to a 30 unit apart-hotel. Valuations have been obtained in the region of 3.4-3.5m GBP for the finished product.
The Knighton
The Knighton Hotel is currently undergoing refurbishment works to allow the event spaces to be brought back into use. This will add significant value to the property, which was last valued 18 months ago at £865’000.
The Grand
A conversion of The Grand Hotel to 25 units would cost roughly £1,200,000 GBP and bring the end value of the property to around £2,500,000 using approximations based on certified figures obtained for the conversion of the Maycliffe Hotel in Torquay.
Lovelady Shield
A £2m GBP investment at Lovelady Shield Hotel would allow for around 10 units to be built on the grounds of the property (in line with existing outline planning permission), each of which would be worth roughly £400k, adding a value of circa £4m GBP to the estate.
The Stromness
A refurbishment of around £3m GBP would be required to achieve a back-to-brick renovation on the entire property, bringing existing rooms to a much higher standard, converting the First Floor to an additional 18 rooms, potentially installing kitchenettes in some suites to allow for increased winter trade, and shifting the restaurant and reception to the currently disused groundfloor, which opens up to the main square in town.
Northop Hall
A jump in valuation is expected on Northop Hall now that the refurbishment has been completed, and further increases in value would be expected to a growing trade and profitability over the coming years.
Minstrel Court
A title split would increase the value of the property in the near future, followed by a further investment of around £1m GBP to build 15-20 additional cottages on the grounds of the hotel, which would each have an end value of around £200,000. Coupled with an increase in trade over the next few years, this would continue to increase the valuation of the property.
Royal Hotel
The Royal Hotel is in the process of undergoing a full back-to-brick refurbishment of around £4m GBP to fully upgrade all rooms and services, as well as to reconfigure disused parts of the ground floor and basement to turn it into a luxury wedding and events venue. An expected valuation of £150,000 GBP per room has been assumed on the end product, to include all the aditional amenities being added.
Subsequent to this, construction at the back of the hotel has been assumed for a value of around £4m to build a structure to serve as an apart-hotel, residential accommodation or co-living space. Given the uncertainty at this stage in the final product, the gain from this development considered in the above calculations is minimal compared to what it would hopefully be once full feasibility studies have been underatken to determine the best course of action.
Disposals
We are currently seeking to dispose the Douglas Arms Hotel, and Plas Bellin Hall. The proceeds have been assumed to be invested into a new property project at an annual growth rate of 25%.
Comparable Properties
Country House Hotels
Boutique Hotels
Aparthotel Conversions
Country House Hotels
Luxury Country House Hotels transact at figures up to £250,000 per room, similar to Northop Hall Hotel and Lovelady Shield Hotel, which could achieve much higher valuations once successful trading has been built up.
Boutique Hotels
Premier Inn, UK, valued at £100,000 – £150,000 per room, relevant to The Knighton Hotel, which could be repositioned to command higher rates.
Aparthotel Conversions
Staycity Aparthotels, valued at £150,000 – £300,000 per room, relevant to Irvine River Guesthouse, The Grand Hotel and Maycliffe Hotel for potential conversion.
Further investments
When averaged out with an assumed growth of 50% on new acquisitions, yields an annual growth of 25% as assumed in our projections. Our track record to date has been 67.98% asset growth in the first 3 years after acquisition, however we are using a more cautious approach in our future growth projections.
Valuation Methodology
Projected Income: With a 10% yield on £41,450,000, the anticipated annual income is £4,145,000.
Valuation Multiple: Applying industry standards, a multiple of 15x to 20x earnings is appropriate. For high-growth, tech-enabled businesses, a higher multiple is justifiable.
Using a 15x Multiple: £4,145,000 (income) x 15 = £62,175,000.
Additional Value from Operational Efficiency: Advanced technology and operational efficiencies can add 50% to 100% to the baseline valuation.
Additional Premium: £62,175,000 x 50% = £31,087,500.
Total Adjusted Valuation: £62,175,000 + £31,087,500 = £93,262,500.
– Strategic Positioning: Our technology-driven model and focus on distressed asset turnaround provide substantial value beyond traditional metrics.
– Market Conditions: Given strong growth prospects and performance metrics, applying a premium multiplier aligns with industry practices for high-growth, tech-enabled businesses.
– Investor Returns: The £120 million valuation reflects not only current asset value but also long-term income potential and market positioning advantages. Our Asset Growth of around £7 million over the last year, suggests a potential valuation in excess of £120 million:
£7,000,000 x 20 = £140,000,000
Projections for 5-years down the line indicate an annual growth in asset value of £33 million. By applying a similar calculation, this would provide a valuation of:
£33,000,000 x 20 = £660,000,000
This translates to an ROI of 5.5x in 5 years.
Meet Our Leadership Team
Our leadership team at Paymán Investments is composed of seasoned professionals with extensive experience across the hospitality, finance, and marketing sectors. Together, they bring a wealth of knowledge and a proven track record in transforming underperforming assets into high-value properties. With a focus on strategic acquisitions, operational excellence, and innovative marketing, our team is dedicated to driving sustainable growth and delivering exceptional value to our investors. Their combined expertise ensures that Paymán Investments is well-positioned to capitalize on market opportunities and continue expanding our portfolio.
Na’ím Anís Paymán
Chief Executive Officer
With over a decade of experience in hotels and the serviced apartment industry, Na’ím set up Paymán Investments at the height of the pandemic and has demonstrated an excellent track record since in spotting and acquiring under market assets and adding significant value over a number of years. His simultaneous experience in setting up Zeevou and GuestGuru, two leading hospitality tech start-ups, has allowed him to set up a highly efficient, tech-driven operational arm of the business with potential to easily handle further expansion.
Gaurav Chabra
Chief Financial Officer
With over 12 years of experience in finance, operations, and strategic growth, Gaurav plays a pivotal role in enhancing operational efficiency and financial performance across Paymán Investments. His leadership is crucial in driving sustainable growth and ensuring that all properties are operating at their highest potential.
Fritha Jaine
Chief Operating Officer
Fritha brings 20 years of experience across various property and hospitality sectors. She is responsible for overseeing the operational teams at Paymán Investments, ensuring that all properties deliver exceptional customer experiences. Her focus on health and safety, employee engagement, and guest satisfaction is key to the success of our operations.
Rachel Beech
Chief Marketing Officer
Having spent 10 years heading up marketing teams for high-end property firms, Rachel moved across into proptech as VP of Marketing for one of London’s first proptech firms. She subsequent sat on the management teams for companies in fintech, edtech and ecommerce companies, specialising in marketing and brand strategy for high-growth companies
Risk Factors
While there a number of risk factors associated with this investment, we believe that we are well-prepared to minimise the likelihood of these jeopardising our business model.
- Risk: Economic downturns or shifts in the hospitality market could impact property values, occupancy rates, and overall profitability.
- Mitigation: Paymán Investments mitigates this risk by focusing on acquiring properties below market value, ensuring a cushion against market fluctuations. Additionally, our diversified portfolio and focus on operational efficiency help maintain profitability even in challenging economic conditions. We have shown an ability to pivot in ever-changing market conditions, and to grab opportunities where they arise. For example, in light of the inflationary pressures, we started pivoting to hospitality properties that are also suitable for hosting weddings.
- Risk: Inefficiencies in property management, unexpected maintenance issues, or disruptions in daily operations could negatively affect guest satisfaction and financial performance.
- Mitigation: We mitigate operational risks by leveraging advanced technology from Zeevou and GuestGuru to streamline processes, monitor performance in real-time, and respond quickly to issues. Our experienced operational team ensures that properties are maintained to the highest standards, reducing the likelihood of disruptions.
- Risk: Changes in local, national, or international regulations could affect property operations, tax obligations, or compliance requirements.
- Mitigation: Paymán Investments stays ahead of regulatory changes by maintaining a strong legal and compliance team that monitors potential impacts on our properties. We also engage with industry bodies and local authorities to stay informed and prepared for any adjustments needed to comply with new regulations.
Investment Terms
We are seeking to raise £20m and are open to considering equity participation, debt, or a mixture of the two. The funds would be split between refurbishment of existing properties, acquisition of new stock and the development of AI software. As a data-driven company, we would be assessing performance of all properties on a continuous basis and only retaining the top performers, while selling the rest of the properties off to re-invest into new opportunities.
We anticipate a YOY growth of 25% for the next 2 years, over which period we will be focusing on achieving profitability across all properties in the portfolio. Following this, we are forecasting that our annualised growth the growth in asset value will be complemented by a yield of around 10% of property value. We are ideally seeking an investor who would be happy to commit to at least 5 years, to allow us to build an interesting proposition for an exit to a pension fund or a REIT.
Equity participation is invited based on a current valuation of £120 million. Debt participation is being offered at 3.5% over SONIA.
Next Steps
Join Us in Transforming Underperforming Properties into High-Value Assets
We are raising £20 million to accelerate growth and expand our portfolio of underperforming properties. The funds will be used to acquire distressed hotels and refurbish them, transforming these assets into high-performing properties. We will invest in modernizing facilities, upgrading guest experiences, and integrating cutting-edge technology to streamline operations. A portion of the funds will also support our marketing efforts, allowing us to increase brand visibility and attract a broader customer base. By enhancing our operational efficiency and leveraging our innovative technology, we aim to maximize property values and profitability. Join Paymán Investments in revitalizing historic and sub-quality hotels, capitalizing on emerging market opportunities, and driving long-term financial success.
Invest with Us
If you’d like to find out more about this unique, asset-backed yet high-growth potential long-term investment opportunity, we’d love to hear from you! Please use the form below to drop us a line, or contact Na’ím over WhatsApp on +44 7587 495 729.