What is hotel leasing operation?

Lease operation is a mode of operation in which the owner or lessor rents the means of production to the lessee for use and collects the rent.

Lease means that the hotel group signs a lease to lease the owner's hotel, land, buildings, equipment and furniture for a long time, and then the group directly operates as a legal person. In the leasing business model, the lessee must also bear fixed expenses such as property tax, insurance tax and use fee. Hotel group promises to pay the minimum rent agreed by both parties every year, plus a certain percentage of annual operating income.