
The hybrid lease model
OHG have developed an innovative leasing model for landlords that delivers secured guaranteed income, rewarding profits and a sustainable long-term partnership.
The 5 key elements
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25 Year lease
We sign a long-term lease agreement that creates stability and security for both the tenant and the landlord.
Landlords benefit from a steady income stream for the next 25 years and reduces the risk of vacancy and property turnover costs.
As tenants, we can afford to invest into the space knowing that we have a secure home for our guests.
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Base rent
We pay a sustainable base rent with upwards-only RPI rent reviews every five years that generates guaranteed, inflation-hedged income.
The base rent is set at a level that is serviceable even during the worst economical downturns. Combined with our low operational cost model, we are able to greatly reduce our operational leverage.
Defaults become a thing of the past and landlords need not worry about non-payment years or lease renegotiations.
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Profit share
We share 50% of our individual properties’ Net Operating Income with landlords. Genuinely aligning the interests of both landlord and tenant.
In bad years, landlords are protected from tenant defaults thanks to the serviceable base rent but receive a low yield.
It is therefor only right that in good years, landlords can reap the rewards of outperforming assets and generate high yields.
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Asset management
We manage all repairs and maintenance on the property under the form of a full repairing and insuring lease.
We also set aside an annual CAPEX fund that goes into improving the facilities with full transparency on the use of funds.
Due to our continued investment and management, the asset value increases over the term of the lease which subsequently increases the operational profits thanks to upgraded facilities.
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Brand partner
Through years of working in the hospitality industry, we have gained valuable experience and knowledge of what guests need and want.
We have a deep understanding of what makes a guest's experience enjoyable, memorable, and comfortable, allowing us to position our properties accordingly.
We provide personalised, efficient, and high-quality services that exceed guests' expectations and foster customer loyalty.