Hotel F&B Leases: The View from the Restaurant [Summary]

Abstract

This article gives a few lessons to restaurant operators who want to start their business in the hotel with the lease agreement. Regarding building a lease agreement with the hotel company, operators should clarify key divisions in the contract such as the terms of the lease, the rent structure, the definition of gross sales, the operating cost, the hotel company’s imposed standards, and policies, and marketing and advertising. Among those, rent structure and banquet and catering sales, and the ability to attract local clients are the three most critical success factors in earning revenues under hotel-lease arrangements.