INVESTMENT
as head of the hotel and leisure division , in 2013 Benjamin joined Topland at board level to develop a £ 1 billion ( US $ 1.4 billion ) hotel portfolio . In 2015 , he led the strategy which brought together a 28-hotel portfolio under the Hallmark and Hallmark Inns brands .
Benjamin talked to HOTELS in September to better explain the AGO concept and the way forward . He talked about the model which gives landlords a certainty with rent payments , which , during COVID , was clearly no longer available in any real estate asset class . “ We created this model to give landlords a certainty with rent payments , which clearly was no longer available through other platforms . We created a threshold of rent at a tenant affordable level , which was only paid after we ’ d had a CapEx reserve put aside for the particular owner ’ s property ,” Benjamin says . “ And then only after we paid the rent , we ’ d take a fee , so landlords were able to feel a bit more comfort the threshold was correct and fair .”
Benjamin adds that banks see there is a lot of sense and financial acumen behind the model . “ They like the transparency , which historically they never had , because they would never see a P & L ,” he says . “ They like the fact we weren ’ t going to get paid anything unless we performed . So , they could see the investor was ultimately very protected .”
When it comes to paying profit rent , Benjamin says initial indications have AGO hoping to pay some by Q4 based on Q3 performance .
With news spreading , Benjamin further projects taking AGO to 50 hotels in two years . He ’ d like to move further into Europe , beyond the U . K ., with the concept .
WE CREATED THIS MODEL TO GIVE LANDLORDS A CERTAINTY WITH RENT PAYMENTS , WHICH CLEARLY WAS NO LONGER AVAILABLE THROUGH OTHER PLATFORMS . WE CREATED A THRESHOLD OF RENT AT A TENANT AFFORDABLE LEVEL WHICH WAS ONLY PAID AFTER WE ’ D HAD A CAPEX RESERVE PUT ASIDE FOR THE PARTICULAR OWNER ’ S PROPERTY .
– LIONEL BENJAMIN
60 hotelsmag . com November / December 2021