CMS guide to hotel industry issues: sale and leasebacks

United Kingdom

Ignoring for these purposes the rights of mortgages, most hotels round the world are still owned outright by their operators. However, an increasing number of operators are taking the view that the capital they have locked up in the land, bricks and mortar of their hotels could be better employed in renewing and refurbishing some of their hotels and in expanding the brand and its business. An obvious way of unlocking the capital is to sell the hotel, whilst continuing to run it.