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.

1. Preparation

1.1 Owner or even lease

It happens again and again that the current tenant is looking for a successor himself. However, it is important to clarify beforehand whether this is in the interests of the owner. It is of course best to get the owner's written consent. Because in the end it is always the owner who decides, as he is also the contractual partner in the lease. This is the only way to ensure that a new tenant can be successfully placed.

1.2 Numbers instead of painting

There are always good reasons why the current lease is terminated. In order to show a potential new tenant the chances of success, a previously successfully run business should always disclose sales figures. Of course, the turnover also depends on the restaurateur himself, but it is not a disadvantage for the new tenant to have the good turnover of the predecessor in mind. But fixed costs such as energy costs are also helpful for planning. Of course, due to the pandemic, the last 2 years are not meaningful. We therefore recommend using the figures from 2018 or 2019 as a basis.

1.3 Important key data

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

Beverage supplier
Brewery (bound by contract Y / N?)
Laundry service
Wholesale market
energy supplier
Existing service contracts for inventory
Etc.

1.4 Inventory

Depending on whether inventory is taken over, it is essential to create a complete list of the existing inventory. The new tenant then of course decides for himself whether he will continue to use everything or bring his own inventory to use. However, if a transfer fee or deposit is to be paid, the value of the inventory must be documented using the list.

1.5 Illustration / tender

As with the sale of a catering property, care should be taken to ensure that beautiful pictures, videos, if necessary a virtual tour, all floor plans and information on the competitive situation in the area are used or built in. When it comes to determining a reasonable lease, we have a separate article online here . Of course, we can also help you determine an appropriate rent. Particularly since the outbreak of the pandemic, special features have to be taken into account.

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.