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Commercial Lease Agreement (Tenant) for Hotels, Motels & Inns

Accommodation · NAICS 721 · Commercial Lease Agreement (Tenant)

A commercial lease is a critical contract for any accommodation business, whether you're opening a new hotel, motel, or bed-and-breakfast. Unlike a residential lease, commercial leases are heavily negotiated and often favor the landlord. This document is designed from the tenant's perspective, helping you secure terms that protect your operational flexibility, your investment in improvements, and your ability to run a successful lodging business. It covers essential clauses such as permitted use, maintenance responsibilities, signage, and what happens in case of damage. By using this agreement, you can enter negotiations with a solid foundation and avoid common pitfalls that could jeopardize your operations.

When you need this document

When you are leasing a property to operate as a hotel, motel, or bed-and-breakfast.
When you are renewing an existing lease and want to renegotiate terms favorable to your accommodation business.
When you are taking over an existing lodging property and need to ensure the lease allows your intended use.
When you are negotiating a lease for a property that requires significant tenant improvements (e.g., adding rooms, upgrading plumbing).
When you are subleasing space within a larger property for a restaurant or event venue attached to your accommodation.

What the generated draft includes

Parties and property description
Lease term and rent provisions (base rent, security deposit, late fees)
Permitted use clause tailored to accommodation operations
Maintenance and repair responsibilities
Utilities and operating expenses
Signage and branding rights
Assignment and subletting provisions
Insurance and indemnification requirements

Frequently asked questions

Why do I need a tenant-specific commercial lease for my hotel?

A standard commercial lease may not address unique needs like 24/7 operations, guest safety, or the ability to install signage. A tenant-specific lease ensures you have rights to run your accommodation business without unnecessary restrictions.

Can I assign or sublet the lease if I sell my hotel?

Yes, but only if the lease includes an assignment clause. We recommend including a provision that allows assignment with the landlord's reasonable consent, so you can transfer the lease to a buyer or new operator.

What happens if the property is damaged by a fire?

The lease should include a damage and destruction clause. For hotels, we recommend allowing you to terminate the lease if the property is unusable for more than 90 days, so you are not stuck paying rent on an unusable property.

Self-help document generator: you get a structured draft based on the facts you provide. It is not legal, tax, or financial advice; verify jurisdiction-specific rules before sending.