The Art of The Deal: The Hotel Owner, The Billionaire and The Bluff

7 comments

Written by: Topics: Dealmaking

It’s true, information is power. But what you do with it is far more important.

And so it happened that one day, not too long ago, I had an epiphany. I was walking down a street in Mayfair holding a Perrier bottle in one hand, a briefcase in the other and a folded City A.M. newspaper under my right arm. I arrived at a street crossing and joined other pedestrians waiting to traverse the street.

As I waited for a signal change, I briefly looked at the people around me and then lifted my gaze to meet one of the most beautiful real estate assets in the world. A magnificent 5-Star hotel steeped in history. I must sell this building.

Creating a market

Who could I sell this to? I didn’t have a buyer in mind. Clearly, it would have to be someone for whom money was no object. Someone who was more interested in the prestige element of having a trophy asset. Someone who wanted more than anything to point and say “I own this”.

What about the hotel owner? Was his hotel for sale? Luckily, I knew that almost anything is for sale. For the right price.

Neither the hotel owner nor the billionaire investor knew what was coming. I told the owner, “Someone would like to buy your hotel”, and the billionaire, “There is a hotel for sale.” And both were told, “This is a unique opportunity”.

See the video.

Takeaway

How to orchestrate a £500 million deal.

- Approach owner of an amazing 5* hotel.
- Tell them you have a buyer who wants to pay a lot of money to buy it.

- Approach a Saudi billionaire and tell them one of the most beautiful hotels is on sale and that owning it will be a great source of prestige.

- Introduce the two.

Take your cut!

{ 7 comments… read them below or add one }

Roger Qian July 30, 2013 at 7:35 pm

Well done. Enjoyed the video format. More please.

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Rodrig Andrisan July 31, 2013 at 4:25 pm

Nice! It has the atmosphere of a Bond movie, probably because of the music? Not only, the actors are very good… Good direction and editing too!

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3xK August 1, 2013 at 12:13 pm

Amazing…
simply amazing…

a Greek island for sale…n then see the ibankers smile

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Jack August 2, 2013 at 8:47 am

Is it possible to have a transcript as well? So I can read it while at work :D

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The ibanker August 5, 2013 at 4:00 am

Hi Jack,

I posted JPGs of the script on FB: https://www.facebook.com/theibanker

Tib

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Kate August 2, 2013 at 6:36 pm

Awesome! Witty and really good paced video!
Like an extract from a movie.
Great performances, great direction and editing!
Really loved it and looking forward to the next one.
Want to see more of the ibanker’s tales!

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Ying August 4, 2013 at 11:00 pm

Excellent description of the art in a few words, in a few screenshots.

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