Fixed rent,
or the upside.
We work under either a master lease or a management contract. The choice determines who carries the operating risk, what you receive, and how much of your attention the asset requires. We discuss the structure before we discuss terms.
Two structures
Master lease
We take the building on a lease and pay you a fixed monthly rent. Revenue volatility, employment and the operating cost base sit with us.
- What you receive
- Fixed rent
- Operating risk
- Carried by us
- Your involvement
- Effectively none
- Suits
- Owners who want a predictable return and no exposure to how the asset trades.
Management contract
Revenue and operating costs remain with you. We run the asset and are paid a fee. If performance improves, the benefit is yours.
- What you receive
- Revenue less operating costs and our fee
- Operating risk
- Carried by you
- Your involvement
- Periodic review of reported figures
- Suits
- Owners who want the operating result to flow through to them, and are prepared to hold that exposure.
Management fee
Set on one of the following bases, or a combination, agreed against the scale of the asset and its expected performance.
- A percentage of revenue
- A percentage of operating profit
- A fixed fee subject to a minimum guarantee
From first enquiry to opening
Reviewing the asset
Zoning and permitted use, any licence already held, room count and layout, the condition of the building's systems, location and the demand it draws. For an operating asset we also review current occupancy and the cost base. This establishes which operating formats the building can support — and whether it is a mandate we can take on.
Modelling the return
For each viable format we model achievable rate and occupancy, staffing and housekeeping cost, and the capital expenditure required. Where we see a workable mandate, we present the alternatives side by side with the reasoning behind each.
Agreeing the structure
Master lease or management contract, then terms. Under a lease this means the rent level; under a management contract, the fee basis. Contracts are governed by Japanese law. The language of the executed documents is agreed between the parties.
Getting to opening
Preparing and filing the licence application, systems and equipment installation, recruitment and training, appointment of housekeeping and linen suppliers, and listing across distribution channels. Where refurbishment is required we coordinate and manage the contractors.
Running it
Daily operation, rate management, guest handling, housekeeping quality, maintenance and regulatory filings. Under a management contract we report monthly in English: revenue, expenses and net operating figures.
How we think about running an asset
Design sets the range
Location, room count and mix, the licence obtained, specification. These define what the asset can earn. How much of that range you capture is decided in operation — but the starting point is fixed before opening, which is why early involvement is worth something.
Rate or occupancy
Filling rooms is easy if you discount. Holding rate is easy if you accept vacancy. We forecast demand and reprice daily, working the combination rather than optimising either number in isolation.
Headcount cannot flex with demand
You cannot hire and release staff by the season. Automation is not there to absorb volatility; it is there to lower the headcount the asset needs at all. We size the team to what a quiet month can sustain, then run peaks through the systems.
Remove the manual work
Key handover, paper registration at the desk, entering rates into each channel by hand. None of this is what a guest is paying for. Removing it puts people where their presence actually matters.
Tell us about the property.
We work under both structures. Early-stage enquiries are welcome.
We reply within two business days, in English or Japanese.