Lease hotel & restaurant

What do I need to consider/prepare if I want to lease a hotel or restaurant? And why should I hire a specialized broker?

Absolut Gastronomie Immobililen guides you step by step through the leasing of hotels and restaurants: from the preparation (owner consent, reliable key figures, supplier/contract list, inventory and possible transfer fee) to the marketing (media plan with portals, specialist media, social media, direct contact) and the applicant check (self-disclosure, creditworthiness, experience, shortlist, viewings) to the processing with lease agreement, inventory list and handover protocol.

The process

Advice

In the initial consultation we will determine the procedure and, among other things, the lease price .

marketing

We market your hotel or restaurant/hotel in many digital channels but also directly to our contacts.

Preselection

We carefully check whether the interested party is also the right tenant.

Purchase contract

We will draft the lease agreement for you.

handover

After payment of the deposit

and 1st lease, we take over the coordination and implementation of the handover.

1. Preparation

1.1 Owner or tenant

It often happens that the current tenant seeks a successor themselves. However, it is important to clarify beforehand whether this is in the owner's best interest. It is, of course, best to obtain the owner's written consent. Ultimately, the owner always makes the decision, as they are also the contractual partner in the lease agreement. This is the only way to ensure that a new tenant can be successfully found.

1.2 Numbers instead of painting

There are always good reasons why a current lease is being terminated. To demonstrate the prospects for success to a potential new tenant, a previously successfully run business should always disclose sales figures. Of course, sales also depend on the restaurateur themselves, but it's not a disadvantage for the new tenant to have the previous tenant's strong sales figures in mind. Fixed costs such as energy costs are also helpful for planning. We recommend using figures from the past two years as a basis.

1.3 Key data

When taking over a catering business, it is helpful for the new tenant to have a list of the companies with which the business has worked in the past:

Beverage supplier
Brewery (Contract bound Y/N?)
Laundry service
wholesale market
Energy supplier
Existing service contracts for inventory
etc.

1.4 Inventory

Depending on whether inventory is being taken over, it is essential to create a complete inventory of the existing inventory. The new tenant then decides whether to continue using everything or bring in their own inventory. However, if a purchase price or security deposit is to be paid, the value of the inventory must be documented accordingly using the list.

1.5 Transfer fee

If a compensation payment is to be made for inventory and goodwill, it is imperative to justify it with transparent figures. In other words, the value of the inventory and goodwill must be disclosed. Charging a compensation payment is common practice, but it significantly reduces the chances of finding a suitable tenant.

1.6 Illustration / Tender

As with the sale of a restaurant property, when leasing a property, care should be taken to include attractive pictures, videos, a virtual tour if possible, all floor plans, and information about the competition in the area. We have a separate online article on determining an appropriate rent. Of course, we can also assist you in determining an appropriate rent. Especially since the outbreak of the pandemic, there are special considerations to be taken into account here.

2. Marketing - Tenant search

2.1 Which media provide evidence?

All preparations are complete. Now we face the challenge of choosing which media to use to reach the perfect tenant. This depends heavily on the property itself, its location, and the estimated rent. Based on these parameters, we select the appropriate strategy for the media plan. From standard real estate portals to specialist media, all the way to a very personal approach to potential tenants via our address database, we cover the full spectrum. These days, of course, social media is essential. We have been established here for a long time and have a large network of restaurateurs and investors. The costs for advertising can quickly reach several thousand euros, and these costs definitely exceed the costs of a real estate agent, who naturally has different purchasing conditions and quotas for each media outlet.

2.2 The applicant check

The quality of applications varies greatly, both in terms of the application itself and in terms of their suitability for running a restaurant business. We make a preliminary selection by first contacting each applicant by phone or, alternatively, requesting a self-disclosure via our form. After studying this information, we make an initial selection and then conduct telephone interviews with the most interesting candidates. The applicants who appear suitable are placed on the shortlist. Criteria such as experience, the quality of previous positions, creditworthiness, and the quality of the application itself are important.

2.3. Visits and personal introductions

The shortlisted lease applicants will be invited to a viewing appointment. To prepare, we will provide you with a complete applicant profile with the relevant key data and our assessment. The viewing appointment also serves as an opportunity to get to know each other, as the chemistry between the landlord and the tenant must be right. You will then decide who will be your new tenant.

3. Processing

3.1 Lease agreement

The lease agreement is the foundation for a successful tenancy. Clarity, completeness, and legal compliance must be ensured. We are happy to share our experience and, of course, templates for a suitable contract. However, we do not provide any guarantee and strongly recommend consulting a lawyer before signing.

3.2. Inventory list

Typically, in a lease agreement, the property is handed over with an inventory. The recording and documentation of individual items/equipment is part of the transaction. The lessor must decide whether and which items are to be transferred. However, a lessee may also bring their own inventory into the business and, if necessary, use their own inventory instead of requiring equipment on the inventory list. Therefore, it is very important to document the inventory list accurately and completely.

3.3. Handover

We naturally document the handover of the restaurant or hotel in every detail, creating a protocol and having it signed by all parties present. We do this on-site using the appropriate digital equipment. This way, we avoid any misunderstandings or disputes afterward.

FAQ- Leasing of hotels or restaurants

1. How does leasing differ from selling?

The parameters (numbers, documents, marketing) are similar – only the ownership does not change, but rather a lease agreement is created.

2. What documents do I need to prepare?

Owner consent, reliable key figures (preferably the last 2 years), supplier/contract list, inventory list, justification for any compensation requested.

3. How do I find suitable tenants?

A combination of real estate portals, trade media, social media, and direct contact from databases – managed by a property-specific media plan. Social media is becoming increasingly important.