Site Screening
A preliminary review of the opportunity and its probable hospitality format.
Hospitality leasing & operator advisory
A hotel is an operating business—not a conventional lease.
ACE Brands aligns real estate, operating structure and hotel positioning so owners and operators enter discussions with a clear commercial framework.
Opportunity formats
Hospitality assets we represent.
Each opportunity is positioned according to its intended guest, operating model and market role. The mandate begins with the right format—not a generic circulation to every hotel company.
01Business and city hotels
02Luxury and upper-upscale hotels
03Resorts and destination properties
04Airport and transit hotels
05Highway hotels and motels
06Select-service and mid-market hotels
07Serviced apartments and extended-stay formats
08Heritage and experiential properties
09Existing hotel conversions and rebranding
10Greenfield and built-to-suit developments
11Mixed-use developments with hotel components
Operating structures
The commercial model determines risk, control and return.
Global hotel operators do not follow one universal structure. The right arrangement depends on brand tier, asset type, market depth, capital commitment and the owner’s risk position.
| Structure | How it works | Owner’s position |
|---|---|---|
| Fixed Lease | The operator leases the completed hotel and pays an agreed fixed rent. | Predictable owner income; operating risk largely remains with the operator. |
| Minimum Guarantee — MG | The operator guarantees a defined minimum payment, subject to negotiated conditions. | Provides an income floor; security, cure rights and guarantee conditions remain critical. |
| Revenue Share | The owner receives an agreed percentage of precisely defined hotel revenue. | Creates performance participation, with income varying according to hotel operations. |
| MG or Revenue Share | The owner receives the higher of the minimum guarantee or the calculated revenue share. | Combines downside protection with performance upside. |
| Hotel Management Agreement — HMA | The owner funds and owns the hotel business; the operator manages it for base and incentive fees. | The owner retains operating risk and receives profit after operating costs and operator fees. |
| Franchise Agreement | The owner or appointed manager operates under a recognised hotel brand and its systems. | Provides greater operating control, subject to franchise fees and mandatory brand standards. |
| Third-Party Management | An independent hospitality company operates the asset, sometimes under a separate franchise brand. | Offers operational flexibility and access to specialist management capabilities. |
| Owner-Operated | The owner controls the real estate, operating company and hotel identity. | Maximum control, with complete operating and brand-building responsibility retained by the owner. |
Commercial percentages, guarantees and fee structures are evaluated transaction by transaction. ACE Brands does not present indicative terms as assured returns.
Essential terminology
Understand the language before evaluating the transaction.
- Key
- One saleable hotel room.
- Key Count
- The total number of proposed or operational hotel rooms.
- ADR
- Average Daily Rate: room revenue divided by rooms sold.
- Occupancy
- Rooms sold divided by rooms available during the measured period.
- RevPAR
- Revenue per Available Room: room revenue divided by available rooms, or ADR multiplied by occupancy.
- TRevPAR
- Total hotel revenue per available room, including rooms, food and beverage, banquets and other operating income.
- GOP
- Gross Operating Profit after departmental and undistributed operating expenses, before owner-level costs.
- GOPPAR
- Gross Operating Profit per available room.
- NOI
- Net Operating Income after applicable property operating expenses, based on the definition agreed in the transaction.
- Competitive Set
- Comparable hotels used to benchmark occupancy, ADR, RevPAR and market positioning.
- Stabilisation Period
- The initial period required for a hotel to build recurring demand and reach sustainable operations.
- Ramp-Up
- Progression from opening performance to stabilised trading.
- FF&E
- Furniture, Fixtures and Equipment.
- OS&E
- Operating Supplies and Equipment.
- FF&E Reserve
- A contractual reserve for future replacement of capitalised hotel furnishings and equipment.
- BOH
- Back of House: kitchens, stores, laundry, engineering, staff and service areas.
- Brand Standards
- Mandatory planning, design, service, technology and operating specifications prescribed by the hotel brand.
- Technical Services Agreement
- The operator’s design and technical-review engagement during planning and construction.
- Pre-Opening Services
- Recruitment, training, systems, sales preparation and operational setup before opening.
- Area of Protection
- A negotiated territory in which the operator may be restricted from opening a competing hotel of the same brand.
- Performance Test
- A contractual assessment of operator performance against agreed budget and competitive-set benchmarks.
- Owner Priority Return
- An agreed return payable to the owner before specified incentive fees are calculated.
- Key Money
- A selective operator or brand contribution, normally subject to recovery and contractual conditions.
- Clawback
- A contractual right to recover a contribution, guarantee payment or foregone fee under defined circumstances.
ACE engagement
From opportunity screening to operator mobilisation.
Market & Feasibility
Demand, competitive positioning and operating potential are assessed commercially.
Brand & Operator Alignment
Suitable hotel companies are matched to the asset, market and owner’s objectives.
Commercial Structuring
Lease, MG, revenue share, HMA, franchise and hybrid structures are evaluated.
Operator Outreach
Controlled circulation, information exchange, site visits and proposal management.
Term-Sheet Negotiation
Alignment of tenure, fees, performance obligations, responsibilities and exit protections.
Technical Coordination
Brand standards, area planning, BOH requirements and technical services are coordinated.
Agreement & Pre-Opening
Support continues through documentation, handover, mobilisation and opening readiness.
Confidential preliminary review