Discussion regarding new hotel build.

[TigerBoy1880]

I tell you what, the hotel looks even more of a great idea now. The extra income we receive from that will be even more beneficial.

[RagingBull]

We don't receive income from it.

[loretta]

We don't receive income from it.

I don’t want to sound narky, but honest question, what’s the point of the hotel then?

[RagingBull]

We don't receive income from it.

I don’t want to sound narky, but honest question, what’s the point of the hotel then?

Better long term for us than student dorms.
Also we own the land now.

[sapajo]

We don't receive income from it.

Not so, the land the Hotel sits on is owned by the club and is leased to the hotel operator.

[TomWeston]

We don't receive income from it.

Not so, the land the Hotel sits on is owned by the club and is leased to the hotel operator.

Long term lease for which a premium was paid plus low annual rent or a shorter one with higher annual rent? If the hotel operator is paying for construction I would expect the former, for certainty, so the club might well have received most of its expected income already.

[sapajo]

We don't receive income from it.

Not so, the land the Hotel sits on is owned by the club and is leased to the hotel operator.

Long term lease for which a premium was paid plus low annual rent or a shorter one with higher annual rent? If the hotel operator is paying for construction I would expect the former, for certainty, so the club might well have received most of its expected income already.

Sorry I do not have any insider info on the specific lease deal that has been agreed between the 2 parties.

[RagingBull]

At a fans forum it was said that the hotel operator was paying for the construction.

[dpoc74]

OK so we get the lease money.

I also assume they will do match day, European match packages staying at the hotel where they will get some sort of kickback?

I think it would be good for the area to have a "nice hotel" right outside WR.

Any other benefits can people can think of?

[johnthegriff]

I understood that the land was purchased in our name so we have increased our asset value also that we were to receive a ground rent but I don't know if that were to be an annual sum or a one of payment for a period of time. in any case the existence of the hotel should make us even more viable as a conference and event centre bringing in more non match day revenue.

[MurphysLaw]

[quote=johnthegriff post_id=743677 time=1592474849 user_id=7213]
I understood that the land was purchased in our name so we have increased our asset value also that we were to receive a ground rent but I don't know if that were to be an annual sum or a one of payment for a period of time. in any case the existence of the hotel should make us even more viable as a conference and event centre bringing in more non match day revenue.
[/quote]

I agree - the big gain for the Club is the spin off conference and event business at the stadium.
I don't think that the terms of the JV Agreement with Marshalls have ever been divulged, but it would not be uncommon for Tigers to have retained the freehold interest in the site, granting a ground lease, as suggested. If so, there may or may not have been a 'premium' paid to Tigers, but any rents received going forward are likely to be minimal. The point of such an arrangement is usually the ability to have an element of control, especially when it is immediately adjacent to the Club's main operational site.
I would think there will be more information on this in the next set of financial accounts.