Thus, it seems that the choice between the above options is a business decision, but this choice must be made on the basis of a complete and detailed contractual agreement granting the parties the part for a healthy and fruitful commercial commitment throughout the duration of the engagement. Leasing contracts create an equally viable exit solution for existing hotel owner-operators who want to free up capital, given that institutional real estate investors across Europe have a strong appetite for long-term secure income that allows them to cross-check the liabilities of funds with inflation-linked leases. Between fixed-rent hotel rental contracts, on the one hand, and hotel management contracts directly linked to results, on the other, there is room for manoeuvre for various types of contracts. Hybrid contracts combining the elements of both forms are multiplying. Stage models in which property owners and operating companies sign a lease agreement, while the operating company amortizes a management contract with a leading brand name, are also widely used. With hotel trade still fragmented, hotel brands have highlighted a particular space where their risk becomes negligible. Hotel companies such as Marriott and Hilton have made the decision to move away from the game of ownership and, through franchising, management. Nissen, for example, criticizes this, one of the reasons he prefers a leasing model when sleeping with a brand. The lease agreement also includes a large number of business agreements for the tenant. When the parties opt for a lease, they usually enter into an open-ended lease in Cambodia, with a term of 15 to 50 years. Consequently, the hotel operator enjoys significant rights of use and enjoyment of the immovable property.
He also receives a permanent lease certificate from the cadastre, as soon as it is registered with the cadastre, in order to return the lease contradicted to third parties. A hotel management company is a company that specializes in hotel management. This company manages the hotel for the owner of the property in exchange for a management fee agreed in advance, while all income and expenses are taxed on the owner of the property. Indeed, the management company is nothing but the long and professional arm of the real estate owner, who acts transparently and with a minimum of economic and financial risks. Charles AMAR is a consultant and collaborates with Sarin & Associates in collaboration with DFDL. For more information, please contact him at: No 30, Preah Norodom Boulevard, 4th floor Bred Bank Building, Sangkat Phsar Thmey 3, Khan Daun Penh (PO Box 7), Phnom Penh, Kingdom of Cambodia, T: +855 23 210 400 | M: +855 68 68 66 02 | E: firstname.lastname@example.org Leasen or not to do it, that`s the question. So choose, but choose wisely. If you are considering investing in a hotel or catering property, it is essential to analyze a solid and detailed forecast of the company`s future cash flow forecasts. The international tourism council ASPI AG – Auer, Springer & Partner International (www.aspi.ag) recommends analyzing different scenarios for each hotel based on development forecasts for each hotel market.
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