Lord Bracknell
On fire
Nobody knows the structure of the financial deal that the Club will make with the hotel operator. Will the operator pay the Club up front and keep all the revenue from running the hotel? Or will the operator lease the premises at an agreed annual rent? Or will the club's income be tied into a proportion of room occupancy charges? Or will the Club simply sell the hotel to another organisation (possibly the hotel operator)? Each of these options produces a different spread of risks and a different outcome.... Clearly, there's no way that a hotel will be generating revenue soon ...
The worst case scenario would see the Club paying to build the hotel and no operator coming in to run it. Whether this happens would depend on the relative projections in the different business plans that will be prepared.
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