Revenue and pricing

Shops, a hairdresser and a photographer in the hotel: rent, revenue share or run it yourself

Compare rent, revenue share and in-house operations for hotel shops. Learn which model fits your property and how to manage tenant risks effectively.

  • 12 min read
  • AI Otel Editorial

AI draft · awaiting editorial review

Contents

Key takeaways

  1. A concession inside a hotel is a business run on the hotel's premises by someone else, and the hotel's name stays on the guest's experience of it.
  2. Rent buys certainty and gives up the upside; a revenue share buys alignment and needs a sales report you can audit; running it in house buys margin and adds payroll, stock and a manager's attention.
  3. The question that decides the model is not income but who answers the guest at the front desk when the product fails.
  4. Every clause that matters later is a clause about a boundary: hours, standards, utilities, exclusivity, guest data and how the arrangement ends.
  5. Check a tenant monthly on reported sales, complaints and whether the offer still matches the guests in the building, not once a year on the renewal date.

There are three models: the hotel runs the unit itself and keeps the margin but carries the staff, stock and risk; it rents the space for a fixed sum and gives up control; or it takes a share of the tenant's sales, which ties income to performance but needs reported sales you can check. The guest sees one hotel either way.

A guest buys a necklace in the lobby shop on Saturday, the clasp breaks on Monday, and she brings it to the front desk. The shop is somebody else's business, but she checked into your hotel, and the review will carry your name. This article sets out the three ways to run a shop, a hairdresser or a photographer inside a hotel, what each earns and costs, how the bill and the fiscal document work, and which clauses settle the argument before it starts.

What are the three ways to run a shop, a hairdresser or a photographer inside a hotel?

There are three: the hotel operates the unit with its own staff and stock, it leases the space to an independent business for a fixed rent, or it takes a percentage of that business's sales. Each one moves a different risk to a different party. The choice is the same one a hotel faces at the level of the whole property, as covered in the same three-way choice at the level of a whole hotel.

The three models in one line each

In house, the hotel is the seller: the person behind the counter is on the payroll, the stock sits on the hotel's books, the hotel sets the price and carries a slow month. Under fixed rent, the tenant is an independent business and the hotel is a landlord; income is the rent, and it arrives whether the tenant sells well or badly. Under a revenue share, the tenant still sells, but the hotel's income moves with sales, so the hotel now depends on a number it does not produce.

Mixed forms are common and often better than either pure form: a minimum rent plus a share above a threshold, a share with a floor, or a tenant who brings everything except the space and the utilities. One trap sits inside the building: the hotel's own reception is a competitor. If reception sells the same sunglasses, the tenant's sales fall, and the share falls with them.

The decision rule is to start from what the hotel can staff and supervise, not from which model sounds most profitable on paper.

Why a hairdresser is not a shop

A shop is stock and price: the risks are shrinkage, slow-moving items and pricing. A hairdresser is appointments, water, towels and a person's time: the risks are no-shows and quality. A photographer is a booking, images of guests and a delivery of files or prints: the risks are consent, delivery time and the later use of the images. Each unit needs different clauses, so do not reuse one template for all three.

Who does the guest think is responsible when something goes wrong?

The guest sees one business. Whatever the contract says, the complaint, the review and the reputational cost arrive at the hotel's front desk.

The guest checked into the hotel, not into the tenant. If the tenant's staff wear no uniform and carry no name badge, the guest does not know there is a boundary at all. Reviews are written about the hotel: a bad haircut or a broken souvenir lands in the hotel's rating and in the text a future guest reads before booking.

Conduct cannot be fully delegated, but it can be shaped. The hotel can set standards, require a uniform and a price list, and keep the right to remove a person from the premises. Name the escalation path in writing: who the guest is handed to, how quickly, and who decides whether the hotel compensates and then recovers from the tenant.

The tenant's staff also see guest names, room numbers and movements. That is personal data, and the agreement has to say what the tenant may collect, keep and share. A photographer takes images of guests, sometimes of children, so consent and the later use of those images need a written rule, not a verbal understanding.

Key pointThe guest does not experience your contract

The guest experiences one building with one name on it, so the standard you tolerate is the standard you will be reviewed on.

Make the boundary visible rather than hidden: signage, a line in the room folder or the guest app, and a named contact for complaints. The same logic applies to the spa lease, where guest-facing risk is highest.

Which model earns the hotel more, and what does it cost in effort?

In house earns the most per sale and costs the most attention; fixed rent earns the least in a good month and costs the least; a revenue share sits between them and depends entirely on whether you can see the tenant's real sales.

For each model, compare what the hotel receives, who carries a bad month, who controls price and standards, and how much attention the unit takes from the team.

ModelWhat the hotel receivesWho carries a slow monthControl over price and standardsEffort inside the hotel
Hotel runs itFull sales marginThe hotelFullHigh: manager, rota, stock
Fixed rentThe agreed rentThe tenantLowLow: collect and inspect
Revenue shareA share of reported salesSharedMediumMedium: monthly review
Minimum rent plus shareRent plus share above thresholdMostly the tenantMediumMedium: monthly review

Effort is not only hours. A tenant needs supervision, a monthly review and someone willing to enforce standards. An in-house unit needs a manager, a rota, stock control and a price list that is reviewed.

For example, and this is a hypothetical figure, not a market rate: a tenant reports 100,000 lira of sales in a month and the agreement sets the hotel's share at 15 percent, so the hotel receives 15,000 lira before utilities. Under a fixed rent, the same month would have paid the agreed rent whatever the sales figure was. The hybrid protects the hotel from a weak tenant and still shares the strong months, which is usually the easiest agreement to defend internally.

Should the sale go on the room bill or be paid in the shop?

Put it on the room bill only if the hotel is willing to carry the receivable and settle with the tenant. Otherwise the tenant collects in the shop and the hotel's income stays rent or share.

On the folio, the guest signs the charge to the room, the hotel collects at check-out, and the hotel then owes the tenant its part. The hotel has taken on a receivable, a reconciliation and a settlement cycle. In the shop, the tenant collects and the sale is the tenant's; the hotel's only number is the rent or the reported sales, and there is nothing to reconcile.

Who sells decides who issues the fiscal document. In Türkiye, every stay involves a payment, a fiscal document (an invoice or e-document), a guest identity notification (KBS) and personal data (KVKK), and every sale needs a fiscal document. Which document, and in whose name, follows from who the seller is.

If the hotel posts the sale, the tenant sees a room number and a guest name, so say in the agreement what may be recorded and what may not. A charge on the folio must be reversible: a wrong charge, a returned item or a disputed price is corrected by a void and a reversal, never by deleting the line, and the guest should see the corrected bill before check-out.

Timing is where it breaks: a guest who checks out before the tenant settles, a charge posted after the business day is closed, a group bill split across several rooms. Decide the settlement rhythm in advance, weekly or at check-out, with a statement the tenant signs, so neither side is reconstructing the month from memory.

NoteWho issues the fiscal document

If the hotel posts the sale to the folio it is the seller and the fiscal document is the hotel's; if the tenant collects in the shop the document is the tenant's. The rule of thumb is simple, the application is a question for the hotel's accountant.

Which clauses settle the argument before it starts?

The clauses that matter are the ones about boundaries: when the unit opens, what standard it keeps, who pays for what, what the hotel may not do next door, and how the arrangement ends.

Write opening hours and closure days for the low season as well as the high season, and for the days the hotel itself is quiet. Set standards: uniform, name badge, an approved price list, a complaints route and the hotel's right to remove a person from the premises. Cover utilities and metering, electricity, water, air conditioning, internet, waste and the cleaning of shared areas, and who pays where no separate meter exists.

Exclusivity should run in both directions: whether the hotel may open a second unit or sell the same product at reception, and whether the tenant may sell outside the hotel. Guest data needs its own clause: what the tenant may collect, keep, share and delete, and what may be photographed and published. For a revenue share, require a monthly report in an agreed form and the right to check it against the tenant's own records.

Money, fit-out and exit complete the list: rent or share, the payment day, the deposit, late payment and who bears the card commission; who pays for the initial build, who owns it, who repairs what, and what stays behind when the tenant leaves; who insures the stock, the guest and the tenant's staff; and notice, early termination, what happens during a renovation or a change of operator.

Before signature, take the whole contract to a lawyer once, and to an accountant for the fiscal side.

ChecklistCarry this list into the negotiation

  • Hours, low season and high season
  • Standards, uniform and name badge
  • Price list approval
  • Utilities and metering
  • Cleaning and waste
  • Exclusivity both ways
  • Guest data and images
  • Monthly sales report and audit right
  • Rent or share, deposit, late payment, card commission
  • Fit-out ownership and repairs
  • Insurance and liability
  • Notice, early exit, renovation, stock at exit

How do you check a tenant's performance month by month?

One page a month, three numbers and one judgment: reported sales, complaints that reached the hotel, and whether the offer still matches the guests who are actually in the building.

Compare reported sales against the same month last year and against the hotel's own occupancy pattern. A fall in a full month is a question, not a verdict. Count the complaints that reached the front desk, not the ones the tenant handled quietly. Check offer fit: beachwear in a city hotel, or prints pushed to guests on an all-inclusive package who have already paid for everything they are going to buy, which is a question what an all-inclusive site can still sell beyond the package treats directly.

Check the hours actually kept. A unit that closes at six misses the walk past before dinner, and the rent or share misses it too. Use the audit right in practice: ask for the tenant's own sales summary once a year even when the relationship is good, because the request is easier to make the first time than the fifth.

Then have the conversation: ten minutes with the tenant each month, not a letter at renewal. Most problems are fixed by a change of hours, staffing, price or stock, so before you reach for a clause, find the cause.

TipA one-page monthly review

Sales reported this month and last year · complaints that reached the front desk · hours kept · one action agreed with the tenant and the date it will be checked.

When should the hotel take a unit back in house?

Take it back when the space would earn more as a hotel-run outlet than as a rent, or when the tenant's conduct costs more in complaints and reviews than the rent is worth.

The triggers are usually visible before the decision: complaints that reach public reviews, unpaid or late rent, an offer that has drifted away from the guest mix, or the space becoming more valuable for something the hotel controls, such as a lounge or a breakfast overspill. The reverse also happens: a hotel-run shop that nobody supervises is worse than a tenant who cares about the counter.

Try the middle path first: keep the tenant and change the terms, with longer hours, a written standard, a minimum rent or a different product mix. Test the decision with the numbers you already have: the rent you received, the complaints you logged, and what the space would have to earn to beat the rent after staff, stock and the manager's time. If the answer is yes, plan the handover like an opening: stock, staff, prices, the fiscal document and the first month's review, following what to stock, how to price it and how it is rung up.

Timing matters as much as the decision. Decide before the season, not in the middle of it: a change of unit in July costs the season, not a week.

Watch outCheck before you plan the changeover

Check the notice period and who owns the fit-out before you plan the changeover. A unit you cannot empty in time is not a plan, it is a hope.

What to do next

Write down who answers the guest before you write down the rent. Choose the model from what the hotel can staff and supervise, settle the boundary clauses in one contract, and review the unit once a month on one page. Then rent, revenue share or running it yourself becomes a decision you can revisit, not a contract you regret.

Frequently asked questions

Can a hotel concession tenant charge purchases to the guest's room?

Yes, if the agreement and the hotel's system allow it, but the hotel then carries the receivable and must settle with the tenant. Who issues the fiscal document follows from who the seller is, so the hotel and the tenant should agree that in writing and confirm it with an accountant.

Who is liable if a guest is injured in a leased hotel shop?

Liability depends on the contract, the insurance and the facts of the incident, and the hotel's name is on the building either way. The agreement should name who insures what, who handles a claim first and who pays. Take the contract to a lawyer before signature rather than after an incident.

How is a revenue share with a hotel hairdresser set?

There is no standard figure, and this article gives none. Start from what the hotel contributes, which is footfall, space, utilities and reception bookings, and from what the tenant carries, which is staff, equipment and consumables. Whatever the split, require a monthly report in an agreed form and the right to check it.

Should the hotel photographer be exclusive to the hotel?

Exclusivity buys investment and a standard the hotel can enforce, and it costs the guest the choice of a second photographer. Decide whether the hotel wants one named operator or a small rotation, and write the rule on consent and the use of guest images either way.

What happens to a tenant when the hotel closes for the season?

The agreement has to say, because the answer is not obvious. Cover rent during closure, minimum opening days, notice, and what happens to stock, fixtures and the tenant's staff. Settle it before signature, when both sides still have something to trade.

AI Otel EditorialEditorial team

Drafted with AI assistance from AI Otel’s published fact base. Not yet reviewed by an editor.

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