Within the Nordic hotel property market, the following types of agreements are the most common:
Revenue-based rent with a minimum guaranteed rent
This means that the hotel operator, as a tenant, is paying an agreed percentage of the hotel’s total revenue. However the property company, as a lessor, is guaranteed a minimum rent.
Revenue-based rent
In this case the hotel operator, in the role as a lessee, pays a percentage of the hotel’s total revenue.
Fixed rent
In this case the hotel operator is paying a fixed rent independent of its level of revenue.
95 % of Norgani’s rental agreements portfolio is revenue-based with a minimum guaranteed rent. Through agreements based on the hotel operators’ revenues, there is a common interest, for the hotel operator as a lessee and for Norgani as a lessor, to develop the hotel properties and to make investments that contribute to increased revenue.
