Hospitality Experience

Analysis of Hotel Lease Agreements in Poland

Analysis of the terms and conditions of lease agreements in selected cities in Poland. The project aimed to identify hotel projects initiated since 2018 and potential new projects planned for the years 2022-2025. The evaluation also considered potential changes resulting from the pandemic and the ongoing war in Ukraine. Additionally, the study focused on understanding the typical structure of lease agreements within the hospitality industry.


Project Scope

We were engaged to conduct an analysis of lease agreements across selected cities in Poland, focusing on evaluating their terms, financial implications, and alignment with market standards. The objective was to provide the client with a clear understanding of the agreements’ commercial viability and identify potential areas for renegotiation or optimisation.

The project began with a thorough review of the lease agreements provided by the client. Key aspects such as rent structures, escalation clauses, termination conditions, and tenant obligations were meticulously analysed. This enabled us to assess the financial impact of each agreement on the client’s operations and identify any terms that could pose risks or inefficiencies.

To provide context, we conducted a market analysis of leasing trends in the selected cities. This included benchmarking rent levels, lease durations, and common terms against current market standards. We examined local property markets and economic conditions, highlighting regional variations that could influence the agreements’ competitiveness.

Our findings revealed disparities between some agreements and prevailing market conditions. In cases where rents exceeded market averages or terms were overly restrictive, we provided recommendations for renegotiation strategies. Conversely, agreements with favourable terms were flagged as potential benchmarks for future leases.

The final report offered the client actionable insights, including prioritised recommendations for renegotiations and strategies to align leasing practices with market trends. By addressing these opportunities, the client could enhance their operational efficiency, reduce costs, and position their portfolio more competitively within the Polish real estate market. This analysis played a critical role in optimising the client’s leasing strategy and supporting long-term financial sustainability.

Hospitality
Strategy and Planning
Assets