Who Invests in Hotels That Need Renovation? Serhiy Vakhnenko and His Partners Focus on Existing Properties

Serhiy Vakhnenko invests alongside partners in existing hotels whose potential can be unlocked through refurbishment and repositioning. The focus is on selected properties in Germany and Europe, including wellness hotels and buildings suitable for medical hospitality and longevity concepts.

This investment approach builds on extensive experience in hotel real estate. Vakhnenko’s team has worked with hotel projects for more than 20 years. Through Dominart Real Estate GmbH, he works with owners, operators and international investors, including on confidential off-market transactions.

Today, he also applies that experience to investment projects with partners—from acquisition and refurbishment to the development of a commercially viable operating model.

From Off-Market Transactions to Hotel Investment and Development

Through his work with hotel owners, Vakhnenko regularly assesses properties whose current earnings do not fully reflect the potential of their location and buildings.

The reasons vary: deferred refurbishment, outdated positioning, succession challenges or an owner who no longer wishes to finance the next development phase alone.

His assessment therefore starts with a specific question: Can the existing building be transformed, at a reasonable total cost, into a hotel product supported by demonstrable demand?

A low purchase price is insufficient. The relevant figure is the full project cost, including acquisition, refurbishment, any closure period and the subsequent reopening.

Why Existing Hotels Can Offer an Investment Opportunity

Particular attention goes to locations where developing a comparable new hotel would be difficult. In established resort destinations, mature urban areas and locations with constrained development opportunities, an existing hotel may offer an advantage that is difficult to reproduce.

For Vakhnenko and his partners, the opportunity lies in developing the building and infrastructure already in place.

The assessment examines what can be retained, which technical upgrades are required and whether existing permissions accommodate the proposed concept. Restrictions on new construction may protect a property from additional competition while also complicating its refurbishment.

New Era Longevity: An Additional Development Focus

Over the past three years, Vakhnenko and his partners have been developing New Era Longevity, a project connecting hotel real estate, preventive health, WellTech and medical hospitality.

Alongside activities in Thailand, he is pursuing investment and development opportunities in Germany and other European markets.

For suitable properties, the team develops concepts combining accommodation and hospitality with structured health and restorative programmes. Planning covers equipment, operating procedures, staff preparation, guest information, medical partnerships and financial modelling.

The concept follows the property and its audience. Not every hotel requiring refurbishment should become a longevity hotel. In some cases, modernising an established wellness or resort offering is the stronger investment decision.

Which Hotels Do Vakhnenko and His Partners Consider?

Wellness, Spa and Resort Hotels

Properties in suitable tourism and wellness destinations in Germany, Austria, Switzerland and France are of particular interest.

Existing wellness facilities, good accessibility and identifiable demand can provide a foundation for redevelopment. However, a large spa does not automatically make a project attractive. The suitability of the space, technical infrastructure and operating costs must be assessed.

City Hotels with Repositioning Potential

The team also considers urban hotels where the positioning, use of space or service offering can be improved on a commercially sound basis.

Potential options include health-focused services for day guests and cooperation with medical partners. The investment case depends on demand and the economics of the individual property.

Closed Hotels and Properties Without an Operator

An active hotel business is not a prerequisite for an initial review. For closed or operator-free properties, particular attention goes to building condition, permissions, reopening costs and funding during the launch period.

Hotel Sale or Joint Development

Vakhnenko and his partners consider both acquisitions of suitable hotel properties and participation in individual development projects.

Owners may sell their property or remain involved in its next phase. The appropriate structure depends on capital requirements, existing financing and the role the owner wishes to retain.

The first step is to assess the property and its commercial potential. Where the opportunity meets the investment criteria, the parties can then explore the investment structure, responsibilities and implementation.

Frequently Asked Questions

Do Vakhnenko and his partners consider hotels with deferred maintenance?

Yes. Refurbishment and repositioning can create investment potential. Each property is assessed individually against the full cost of delivering the project.

Does the hotel need an existing spa?

No. Existing facilities can be an advantage, but the deciding factor is whether the building, location and investment budget support the proposed operating model.

Can the owner remain involved as a partner?

A joint development or participation structure may be considered. Property valuation, funding, responsibilities and implementation terms must be agreed.

Are hotels outside Germany considered?

Yes. Alongside Germany, suitable properties in other European countries are considered, particularly Austria, Switzerland and France.

Submit a Hotel for Consideration

Owners seeking an investor, buyer or development partner for a hotel requiring refurbishment can contact Dominart Real Estate GmbH.

For an initial discussion, a brief description should include the location, number of rooms, operating status, existing facilities, known refurbishment requirements and preferred form of cooperation.

Contact Dominart Real Estate GmbH

Learn more about Serhiy Vakhnenko on LinkedIn