We Help Hotels Generate Liquid Capital With Sale-Leasebacks
ZEL Capital Partners is a boutique investment firm that offers unique services that help hotels pay off debt, generate liquid capital, and cash out early. We’re dedicated to the partnerships we create and make it a priority to help your business generate the most amount of value while avoiding financial risks.
How Can You Sell Your Hotel But Keep Your Hotel?
There is a way, under a sale-leaseback agreement, popular in Europe’s hospitality scene, the seller of a hotel becomes a lessee to a new owner, maintaining a brand flag and management agreement but avoiding certain economic risks and alleviating concerns over potential oversupply in top markets. A hotel sale leaseback is an ideal alternative method to conventional financing by converting equity into cash and providing tax advantages.
Why ZEL Clients Are Exploring Hotel Sale Leaseback Financing
- Investors wish to exit asset; management desires to continue to operate the cash flowing business.
- Extracting dormant equity out of the real estate for continued growth and expansion.
- Sale leasebacks much greater than traditional financing. In some cases, 82% to 100%.
- Going “Asset Light”.
- To acquire a larger portfolio to expand management platform.
- Seeking relief with taxable events.
What Are The Advantages Of A Hotel Sale-Leaseback?
It’s a Win-Win
While sale-leaseback transactions may be structured in a variety of ways, a basic sale-leaseback can benefit both the seller/lessee and the buyer/lessor.
For Sellers: Create capital from real estate using a financial structure that meets both short term and long term needs. We obtain aggressive cap rates and new construction financing for you. Sale-leasebacks are a good strategy for certain hotel developers who want to cash out early. The buyout is at 100 percent of the fair market value of the hotel.
For Buyers: ZEL Capital Partners has numerous off-market Hospitality/Hotel assets with direct control of prime triple net portfolios for investors and REITs. These deals also provide an opportunity for a buyer looking to keep a hotel’s managers in place, and to also get a return on the leasehold.
The deal, from a real estate standpoint, is relatively straightforward. The sale includes a transfer of title and then a leaseback to the existing seller as a tenant.
Generate Liquid Capital with Sale Leasebacks
A risk-free solution for business owners looking to cash out early or to secure capital for growth
We can help our client’s access capital through the monetization of business real estate assets via sale-leaseback transactions to provide capital for expansion or growth.