Management Letting Rights (MLR)
This model offers a solution for strata titled hotels and serviced apartment developments.
Mantra Group will purchase:
- the exclusive right to operate the hotel or serviced apartment letting business and to conduct the building caretaking
- the associated real estate assets required to operate the letting business (e.g. restaurant, lobby, reception, administration offices).
Mantra Group then enters into a commercial arrangement with owners of the room inventory to facilitate the generation and distribution of room revenue and allocating costs associated with running the hotel letting business.
Mantra Group may elect to implement one of the following mechanisms to facilitate the payment of returns to room inventory owners:
- lease back
- gross room revenue split
20 to 25 years (for the exclusive Letting and Caretaking Agreements)
Mantra Group is Australia’s recognized industry leader in the management of large scale mixed-use strata titled developments. Our dedicated Asset Management team provides developers with a turnkey solution, from concept origination and room inventory sales, to operations and long term asset protection.
Typically, Mantra Group purchases MLR’s for properties in CBD and regional locations which offer a potential letting pool inventory of at least 100 keys.