"Any hotel company wishing to raise money in today's market has severely limited options. The stock market is all but closed to those hoteliers wishing to obtain fresh investment and the reluctance of debt providers has seen them demanding raised levels of equity participation. The only viable way forward for any hotel company wishing to raise money to expand, has been sale and leaseback and expansion is the only option for quoted hoteliers who need growth to satisfy shareholders," Gammage said.
And he said new forms of lease were emerging that were more sensitive to the particular needs of hotel operators. " Rather than the property investor simply offering a lease on a set rent that leaves the operator with a fixed liability, it is often the case that the investor wants to forge a partnership with the operator of the hotel," he said.
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