Lease
Consider the rent structure, tenant covenant, guarantees, investment obligations and flexibility through the term.

Operator Strategy
The structure behind the hotel matters.
Lease, management, franchise or independent operation: each model creates a different relationship between income, control, capital and risk.
Discuss operator strategy
Four operating models
Consider the rent structure, tenant covenant, guarantees, investment obligations and flexibility through the term.
Assess the owner’s operational exposure, management fees, performance tests and allocation of capital responsibilities.
Weigh the brand and distribution proposition against fees, standards, required investment and operational capability.
Review the team, systems and resources needed to support the concept, alongside market positioning and execution risk.
Establish the hotel’s positioning, physical condition, trading profile and ownership objectives. Identify investment constraints and the role the operating structure should play in the transaction.
Consider operators and brands against the asset’s characteristics, target market, required capability and proposed commercial model. Organise discussions and the information needed for an informed shortlist.
Bring fees or rent, guarantees, duration, performance conditions, investment obligations and exit provisions into a comparable framework. Specialist advisers assess legal, financial and technical implications.
Support the selection process, document open commercial points and coordinate with specialist advisers through negotiation. Consider consent requirements, capital works, operational continuity and the transition timetable.
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Share the asset, the operating context and the outcome you are considering.
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