UBM hotels Management GmbH was founded in 2016 to bundle the group’s operational know-how and hotel lease operations under a single roof.
Hotel management as the lessee in a “sandwich model“ with a management contract
The business model covers consulting for UBM Development AG on the acquisition, construction, branding and sale of new hotels and hotel properties. It also includes the management of hotels under a “sandwich model“, in which UBM hotels acts as the lessee between the hotel investor and the international hotel operator who is responsible for the hotel’s management.
In this “sandwich position“, UBM hotels carries the entrepreneurial risk for hotel operations by guaranteeing a fixed lease payment for the hotel’s buyer/owner. UBM’s professional performance and asset management are the key to generating sustainable returns over the entire term of these contracts, which normally cover 20 years.
Active hotel management through franchise contracts
In addition to management contracts, UBM hotels also joins together with partners to conclude franchise contracts with international hotel operators and, in this way, takes an active role in the management of selected projects.