The relevance of management contracts in the hospitality industry
||Ramón Sotelo and Kai Fischer
||The relevance of management contracts in the hospitality industry
||19th Annual European Real Estate Society Conference in Edinburgh, Scotland
||This paper analyses the relevance of management contracts for the finance of hotel projects and delivers a scheme for decision making for the question. Using modern approaches to finance different forms of contracts between the landlord and the hotel-management can be seen as a continuation between debt finance the case of pure lease contract and equity finance the case of a pure management contract. Hybrid forms of contract can therefore be seen a mezzanine form of finance. It is shown, the optimal lease or management contract depends on the liquidity of the location and the standard and type of services delivered to the guest, being usually the category of the hotel the proxy for the ladder. Due to the risk situation of the management contracts they have a direct impact on the project finance of the hotel-project.
Post discussion ...
||Parallel Session C4
These pages are best viewed with any standards compliant browser (e.g. Mozilla).