Properties On Leased Land

As a hotel owner, one critical choice you may encounter is whether to purchase a hotel situated on owned or leased land. This article aims to provide clarity and assist hotel owners in this crucial decision-making process. We’ll examine the potential advantages, such as lower initial costs, the potential for higher cash-on-cash returns, the ability to direct more investment toward business operations, and the opportunity to secure properties in prime locations. Concurrently, we’ll also scrutinize the disadvantages, including limited control and flexibility, unpredictable costs, lack of equity, lease expiry risks, and potential difficulties in securing financing.