Olaf Steinhage and Markus Gretenkord of Horwath HTL in Germany have written their first Industry Report and focused on Finding Hotel Operators and Professional Asset Management in Times of Crisis.
Finding an efficient hotel operator with lasting success is the decisive basis of a successful development of hotel properties. As a rule, long-term leases are concluded with durations exceeding 15 years; they are secured by guarantees and/or rent loss insurances as well as ramp-up agreements.
But what can hotel owners do if the operator fails to perform regardless all ramp-ups and securities or does not want to/cannot pay the agreed rent or not in the agreed amounts? What are the initial signs of such a risk? And above all: What is to be done in such as case?
The focus of this article will be on the enthralling subject of finding hotel operators for existing properties in times of crisis. In many respects, this requires a wide range of specialist knowledge about the commercial, legal, tax and operative processes of a hotel. Additionally, personal contacts and in-depth understanding of the current market situation are required in order to find alternative partners and/or solutions.