How To Get A Lease Option Agreement On A Hotel: Premier Inn is the biggest hotel chain in the entire UK. It boasts over 800 hotels all over the country, but not many people know the business setup behind its roots and how it grew so big. The lessons I personally learned from Premier Inn helped me make my first million pounds. So in a recent video, I talk about how: the company works; how it makes its money; why Premier Inn is so special; and what you can learn from them to do the same thing they’re doing.
If you want to see exactly how they did it, I highly recommend watching the full video until the end. You can find the video at the top of this page or on my YouTube channel.
Using the rent-to-rent model or the lease option agreement strategy, it’s very possible to set up your own hospitality empire. In this article, I will show you how to get a lease option agreement on a hotel in 3 simple steps. If you find this article inspiring, please share it on social media. The more people we can inspire to take control of their lives, the better!
1. How To Get A Lease Option Agreement On A Hotel: Finding A Property!
You need to find a property such as an existing hotel, or large HMO, that the owner wants to sell but isn’t able to. This could be because the business isn’t making a profit or the property is in negative equity. This will mean that the owner will be more open to a creative offer. Offer to rent the property from them, and then have the option to buy it in a period of years once the market recovers (i.e. a lease option agreement).
You will need to make sure the property is in an area with high demand for hotel rooms and that any problems with the property can be cost effectively fixed. If you are dealing with a currently unprofitable hotel, you need to assess whether you will be able to correct this.
2. How To Get A Lease Option Agreement On A Hotel: How To Operate The Hotel
The old way of operating a hotel was to have a staff and a check-in desk. This is costly, and may be why the hotel is losing money in the first place. The modern way to run a hotel is to run it as serviced accommodation. Have self-check in processes with key safes at the property. Have cleaners come in at the end of stays. Ensure guests have detailed welcome packs with all the information they will need for their stay.
If you run your hotel the modern way, you should be more profitable than a traditionally run hotel. You will also have happier guests, because they can avoid the hassle of checking in and get directly to their rooms!
3. How To Get A Lease Option Agreement On A Hotel: Buy The Property With The Cash-flow!
Now you have the property and an option to buy it in a period of years. But how will you afford to buy the property once the time arrives? This is where you need to be disciplined! The profit you are making from the hotel, or at least a portion of it, needs to be set aside. This money is what you will use to buy the hotel.
Delaying gratification can be tough, but the rewards will be worth it. Do this with multiple properties, and you could be the next Premier Inn style hotel chain!
How To Get A Lease Option Agreement On A Hotel: Get Some Training
So now that you know how to get a lease option agreement on a hotel, it's time to get some training! Join me at my next £1 training event!
On the course, you will learn how to:
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Become a property investor using other people’s money so that you can get started straight away
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Utilise the 5 different types of raised finance so that you know exactly what to offer and when
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Find the perfect properties for the BRR strategy
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Recycle your money so that you can ‘rinse and repeat’
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Build a power team you can trust, so that you can save time and money
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And much more!
Tickets are only £1, and you can get yours here. If you are ready to take action, I hope to see you very soon!
