Performance tests
A test measured only against a competitive set the operator helps define is not a test. Budget and RevPAR limbs, time-limited cure rights and repeated failure provisions matter.
Reserve and protection
The FF&E reserve definition changes the owner cash position every year. Area-of-protection language can be equally valuable when a group has multiple brands.
Our read
Model every offer through to exit. Transferability, termination and reserve mechanics will often matter more to sale value than a small movement in the headline fee.
Published for information only. This is not an offer, valuation or investment advice.