Hotel set-ups

Classic assemblies

Real estate and equipment leasing

Allows you to finance walls or equipment (furniture, kitchens, technical installations) while operating them, with a purchase option at term.

Objective:

100% financing of the investment, preservation of cash flow, tax deductibility of rents as operating expenses.

Lease-back

The asset (building or equipment) is sold to an investor or lessor, then leased back to the seller. At the end of the contract, the company can regain ownership.

Objective:

generate immediate cash flow without interrupting operations.

Separation of premises and business (SCI + operating company)

Separate ownership of the building and operation of the asset through two separate structures.

Objective:

protection of real estate assets, independent financing or sale of premises, easier transfer of ownership.

Franchise or management contract

Operation under a hotel banner without transfer of ownership.

Objective:

franchising provides access to a brand and know-how while retaining ownership of the asset, while management contracts outsource management and share risks without diluting ownership.

Property dismemberment

Dissociation between usufruct (operations) and bare ownership (assets).

Objective:

anticipation of family inheritance with reduced rights, tax optimization enabling the usufructuary (operator) to deduct rent (expenses), clear division of roles between investor and operator.

Club deal or co-investment

Acquisition via a joint structure (SCI, SAS), secured by a shareholders' agreement.

Objective:

pooling of contributions, access to premium assets, risk sharing, flexible exit (shares can be sold without liquidating the entire asset).

Advanced assemblies

Sale & Management Back

The owner sells his establishment to an investor and receives the sale price, while retaining management of the establishment under contract.

Objective:

immediate liquidity, management fees (fixed + % of sales), debt reduction (building removed from balance sheet but operational control maintained), win/win arrangement (investor has a stable asset and seller cash and income).

SPV (Special Purpose Vehicle)

Creation of a dedicated company for each hotel operation.

Objective:

compartmentalize risks and hold hotel assets with several separate partners who make repayable current account contributions before dividends are distributed.

Lease & operate

The investor acquires the business (lessor) and entrusts its operation to a third party (lessee). Suitable for :

  • Passive investor looking for rental yield.
  • Hotelier looking to set up without tying up capital.

Objective for the Investor/Lessor :

  • Stable income: Secure fixed rent with no operational risk.
  • Total delegation: Operation entrusted to a professional (manager).
  • Valuation: Possibility of reselling the business with an existing tenant.

Objective for the Manager/Tenant:

  • Access to an establishment without heavy initial investment (no purchase of the business).
  • Deductible expenses (rent).

Partnership limited by shares (SCA)

Structure that separates passive investors, private equity, family (limited partners) and operators (general partners).

Objective:

capital raising without loss of control, limited liability for investors, management reserved for hotel professionals.

Interest to Investors (Limited Partners) :

  • limited liability: financial risk limited to contributions.
  • Attractive yield: Dividends and potential capital gains.
  • passivity: no involvement in management (reserved for the general partner).

Interest to the operator (general partner) :

  • full control: exclusive management of operations.
  • capital raising: access to investors without dilution of power.

Associated legal and tax issues

Each installation must be analysed with regard to :

  • Tax residence of the parties
  • Applicable tax regimes (depreciation, corporation tax, VAT, capital gains, dividends)
  • International tax treaties
  • Risks of requalification (abuse of rights, artificial arrangements)

We'll work with you to structure a customized hotel package that's tailored to your asset and yield strategy, in strict compliance with applicable regulations.

Contact us for a confidential discussion.

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