If the opening of a hotel requires the security of a certain license by the Ministry of Tourism (if it has more than 20 rooms) or by the Ministry of Tourism (less than 20 rooms), the relationship between the hotel operator and the building owner is governed either by a rental contract or by a hotel administration contract (“HMA”). “Leases – management contracts – Hybrid Contacts – Operator Contracts – Definitions – Explanations – Advice and advice from ASP Global Hotel Brokers!” With a hotel rental agreement, the hotel company leases the property to the owner and operates the hotel as a separate entity, separate from the owner of the property. In this way, the hotel company (the tenant) reserves all the income of the hotel and pays a fixed rent (in addition to a certain percentage of the proceeds of the sale). Hotel rental contracts remain the most common form of hotel contracts in Europe. In these contracts, the hotel owner, the hotel rental company, the usufruit of the hotel grounds and all the elements of the rental property are made available to the tenant. In the case of hotels, the rental contract generally includes features, furniture, fittings and equipment, as well as all facilities necessary to operate the hotel. Usufruct means that the hotel tenant manages the hotel under his own name, on his own behalf and at his own risk. Hotel rental contracts are a passive investment in a hotel property. The hotel tenant benefits from the hotel`s management, including as a sub-letter of hotel rooms and other facilities and by providing other hotel services. The real estate investor can only expect a sustainable return if rents are market-based and maintained.

This means that it is particularly important to analyze current rental prices and verify contracts where real estate is potentially too or not low-rented. 1. A significant portion of the profits belongs to the owner when the hotel makes significant profits. Keywords: Business Leasebusiness Leasing TourismeHotel Management Management Arrangement Risks Finally, the “transformation” of this type of agreement gives even more importance to the differential element, due to certain strictly legal issues such as: 2. The hotel company in turn supports all profits and losses as well as all legal and commercial responsibilities related to the management of the hotel, the positive and the negative. 1. For the owner of the property, the fixed payment to the management company continues to be paid, while in some cases the owners may suffer losses because the hotel is not profitable or if the operation is not efficient. Legally, hotel management contracts are the opposite of hotel rental contracts. The hotel manager or operator is required to operate the hotel professionally on behalf of the hotel owner/investor and on behalf of the owner. In general, the HMA is a long-term contract between 10 and 20 years and the operator will have almost exclusive control over the hotel, including the power to set room prices and hotel budget, as well as the definition of marketing strategies and the hotel`s internal policies.