Hotel Sale-Leaseback Case Study

Family Business Succession and Timing For Estate Planning

You are a family-owned hotel and real estate developer with multiple assets under ownership and management. You have several children and grandchildren, and you begin thinking about options for transferring your wealth to your family.

Of your children, only one wishes to stay in the hospitality industry and maintain/grow the management business and operations.

You and the family member wanting to continue the management also wish to begin with a clean slate and take out the existing friends and family partners within the current business structure.

Most of your generational wealth and equity is tied up in your hotel real estate assets. You seek to unlock your equity; however, you desire to keep your family business in the ownership of the opco and business and keep your family member(s) employed, still recognizing the cash flow and management fees.

You are nervous about the significant tax and capital gains implications with a sale as your basis is low, and there is not much debt on your portfolio.

A sale-leaseback would allow you to unlock your equity and ZEL Capital Partners has a platform to transact and protect your exposure from capital gains and benefit your family, generational wealth for your children and grandchildren, and maintain the legacy business opco.

Current Position Summary

• You are a hotel and real estate developer with multiple assets under ownership and management.
• Most of your generational wealth and equity is tied up in your real estate.
• You seek to unlock your equity but desire to keep your family business still in the ownership of the opco and business.
• Sale-leaseback is a solution to unlock equity while maintaining control over the legacy business opco.
• ZEL Capital Partners has a platform to transact and protect your exposure from capital gains.

Benefits of Sale-Leaseback

• Unlock equity from real estate assets
• Maintain control over the legacy business opco
• Cash out friends and family investors
• Recognize cash flow and management fees from the lease agreement
• Diversify and stabilize your investment portfolio
• Free up capital for future investments

Advantages of ZEL Capital Partners

• Expertise in Sale-leaseback transactions
• Tailored solutions to meet your specific needs
• Institutional quality buyers and lenders
• Protect your exposure from capital gains tax
• Ensure a seamless transaction process with minimal disruption to your business

Conclusion

• Sale-Leaseback is an effective solution to unlock equity from real estate assets and maintain control over the legacy business opco.
• ZEL Capital Partners has the platform and expertise to provide a tailored solution that benefits your family, generational wealth and legacy business.
• With ZEL Capital Partners, you can unlock equity, diversify your investment portfolio, and protect your exposure from capital gains while ensuring a seamless transaction process.