Greater security and value
Our Hybrid Lease Model
AGO Hotels’ 25-year hybrid profit lease offers long-term stability and profitability. With a full repairing lease, resilience is built into every part of the model. Secure an upwards-only RPI rent review every five years and receive a guaranteed base rent alongside a share of the operational profits.
Alongside this, AGO’s hybrid profit lease provides downside protection with upside exposure, reducing the company’s operational leverage in a way no other operator has done previously. AGO shares a quarterly trading summary with landlords, unlike the traditional lease structure. Take a look at the key benefits of our model below:
25 year
Lease term from AGO Hotels.
RPI-linked based rent
With 5-yearly rent reviews.
Full repair and insuring
Basis (CAPEX, Repairs and maintenance fully managed by AGO Hotels).
Genuine profit share
50% of individual property EBITDA to landlord.
Long term
Strategic brand partner for Accor.
Viv Watts breaks down the Hybrid Lease Model and it’s benefits.
