INCENTIVE FOR BOTH PARTIES
The value of a hotel property is governed to a considerable degree by the formulation of the hotel lease. To produce a good hotel lease that is dynamic for both parties is a complicated process. In addition to legal expertise, substantial knowledge of conditions within the hotel industry is required, as well as insight into the priorities of each respective party.
SPECIFIC CHARACTERISTICS
Each hotel lease is the result of a comprehensive market analysis that includes changes in the market and the competition in the short and long term.
By using various techniques, Pandox can limit the risk in a declining market and simultaneously participate in a market that is showing an upward trend. Should the operator’s liquidity weaken, Pandox has the expertise and ability to manage the hotel itself, which indeed has occurred on several occasions.
PANDOX' LEASE STRUCTURE
Pandox’ lease structure reflects its active and situation adapted ownership. The lease structure is governed by factors such as anticipated market trends, local competition, planned investments, as well as choice of operators and distributors. By combining various types of contracts, Pandox has achieved a contract structure that is flexible and provides Pandox with increased cash flow in a rising market while simultaneously offering protection against downturns in the market.