Frequently Asked Questions

Who is Minor Hotels?

Minor Hotels was founded in Thailand by American-born businessman and entrepreneur William E. Heinecke. We opened our first hotel in Thailand in 1979 and launched our luxury flagship brand – Anantara Hotels & Resorts – in 2001. Since then, we have grown into one of the largest hospitality companies in the world with hundreds of hotels and resorts across six continents.

Minor Hotel Group commenced operations in Australia in 2011 with the purchase of Oaks Hotels & Resorts, one of the most successful strata titled hotel and resort managers in the country.
We are part of publicly listed Minor International (MINT) – one of the largest hospitality and leisure companies in the Asia Pacific region. MINT is also well known for its international retail and lifestyle brands, and its subsidiary, Minor Food, is one of the world’s largest restaurant companies.

What are the key benefits of each Agreement type?

Bundled Revenue Share Agreement: The Revenue Share Agreement allows the owner and agent to share the revenue generated through the hotel operations, plus the owner has the peace of mind of a 24-month guaranteed return in line with the permanent rental market. There is no upfront cost, and the continuing appointment can be terminated at any time with 30 days’ notice (subject to terms of the Furniture Deed).

Leaseback: The Leaseback option gives the owner a stable and consistent return 365 days of the year with rent aligned to the permanent rental market. This agreement is comparable to any other Residential Tenancy Agreement but, with Minor Hotels as the tenant, there are no vacancy periods, and owners know their apartment is being cleaned and maintained to the highest possible standard. The furniture is purchased at commencement and belongs to the owner. The lease term is 2 years, continuing thereafter.

Long-Term Letting: The Long-Term Letting appointment is an alternative for owners who prefer a traditional rental arrangement. Our Agents work with owners to set the rent and source a Tenant in the rental market. The owner receives the rent paid, less our very competitive letting fees. There is no need to purchase the furniture pack, and the lease term is negotiated with the tenant. As a special offer for Queens Wharf Residences, owners will receive a complimentary photo package, REA advertising, and half priced letting fees for their first letting only.

When does my Agreement start?

Bundled Revenue Share Agreement & Leaseback: The agreements commence, and you start generating rent, as soon settlement is complete, and furniture is installed. Should there be any delays to the furniture installation, Minor Hotels guarantee that rent will be accrued from 10 days after settlement.

Long-Term Letting: The Agency Appointment will commence at settlement, and rent will be paid in accordance with the lease once a tenant is secured.

How is my rent calculated?

Bundled Revenue Share Agreement: The return is based on the actual accommodation revenue generated for your apartment, less our management fee of 51.5% + gst. In addition, Minor Hotels offer a guaranteed minimum return for 24 months in line with the permanent rental market. Should your net rental payment fall below this threshold in any given quarter, your rent will be topped up in the next rent payment, with an annual reconciliation on the anniversary of commencement.

Leaseback: The gross rent is aligned with the rental market and paid in arrears in equal monthly instalments. Our fees include a Management Fee of 6% + gst, Advertising Fee equivalent to one week’s rent annually, and a monthly Administration Fee of $6 + gst.

Long-Term Letting: The gross rent is set at when the lease is signed. Rent is paid in advance by the tenant and remitted monthly. Our standard fees include a Management Fee of 6% + gst, Sundry Fee of $6 + gst per month, and a Letting Fee equal to one week’s rent at commencement of the lease. As a special offer for Queens Wharf Residences, owners will receive a complimentary photo package, REA advertising, and half priced letting fees for their first letting only.

What does the management fee include?

Bundled Revenue Share Agreement & Leaseback: Minor Hotels are responsible for travel agent commission, minor maintenance, cleaning, operation of the reception, employment and management of staff, advertising and marketing, video media and room communication systems management of trust accounts, other related general and administrative costs.

Long-Term Letting: Minor Hotels are responsible for management, advertising, tenant screening, lease preparation and administration, routine inspection, lease renewal, administration and statement fees.

Who owns the furniture?

Bundled Revenue Share Agreement: Minor Hotels will provide a brand new, commercial quality furniture pack at commencement after a separate furniture deed is signed. The furniture ownership transfers to the owner at commencement and the owner receives all depreciation benefits. The furniture is provided at no cost to the owner if they stay on the Bundled Agreement for 5 years. Should the owner terminate their agreement, sell the property or move to a Leaseback Agreement within the first 5 years, they must pay the depreciated value of the furniture.

Leaseback: Owners must purchase the furniture pack from Minor Hotels prior to commencement.

Long-Term Letting: Owners can elect to purchase the furniture pack from Minor Hotels to achieve a furnished rental return or choose to rent the unfurnished apartment without the set up cost.

Who pays for repairs and maintenance?

Bundled Revenue Share Agreement: Minor Hotels pay all repairs, maintenance and replacements up to $100 inc gst. In addition, 3% of gross revenue is paid to an FF&E fund to cover repairs and maintenance, replacements or refurbishment over $100.

Leaseback: Minor Hotels pay all repairs, maintenance and replacements up to $100. The owner pays for all repairs over $100, with approval required for routine maintenance over $250.

Long-Term Letting: The owner pays all repairs, maintenance and replacements with approval required for all non-urgent repairs.

What else do owners pay for?

Under all agreements, the owner is responsible for the normal outgoings related to the ownership of the property, including the strata levies, council rates, insurances, land tax and utility supply. Under the Revenue Share Agreement, the owner is also responsible for utilities.

Why do owners need insurance?

It is a requirement of our management that owners have adequate cover for insurance. Minor Hotels has insurance to cover Minor Hotels’ property, and the Body Corporate has insurance to cover the common property, however owners will require insurance to cover their apartment and the contents within it. Most insurers call this Landlord’s insurance, and owner should ensure their policy covers the apartment for short stay use.

How long is the Agreement and what happens if I sell my apartment?

Bundled Revenue Share Agreement: The Revenue Share Agreement is a continuing appointment and can be terminated with 30 days’ notice. Should the owner terminate their agreement, sell the property or move to a Leaseback Agreement within the first 5 years, they must pay the depreciated value of the furniture. If the unit is sold and the purchaser intends on remaining in the letting pool, they will be asked to sign a new Agreement.

Leaseback: The Leaseback Agreement has a 2-year fixed term, continuing thereafter. Then after the fixed term, the Agreement can be terminated with 2 months’ notice. If the apartment is listed for sale, the sale must be subject to the Leaseback Agreement.

Long-Term Letting: The Agency Appointment is continuing agreement and can be terminated with 30 days’ notice or in the event of a sale. The Tenancy Agreement would remain in place until notice is given and the apartment vacated in line with legislation.

Can I stay in my apartment?

Bundled Revenue Share Agreement & Leaseback: The agreement gives owners, their family and their friends an opportunity to stay in their apartment at any time, subject to availability, to enjoy the same experience that our guests have become accustomed. Should an owner, their family or friends wish to stay, there is no accommodation charge payable, just a cleaning charge will be deducted on departure. Under the Leaseback Agreement, no rent will be paid to the owner for the nights the unit is occupied by the owner or their invitees.

Long-Term Letting: The owner is unable to book their apartment for personal use.

What other benefits do Minor Hotels offer?

Our valued owners have access to exclusive discounts within the Minor Hotels Group in Australia and New Zealand, including Oaks and Avani properties. Owners receive up to 30% off our Best Flexible Rate at these properties.

Owners can also join our loyalty program, Oaks Discovery. With a complimentary upgrade to the GHA Platinum Membership Tier and their membership will be recognised at more than 800 hotels worldwide. Platinum Membership benefits include exclusive member rates and offers at participating hotels, 6% back in Discovery Dollars (D$), room upgrades, late check out and more.

How does the Minimum Return Guarantee work under the Bundled Revenue Share Agreement?

For the first two years, at the end of each quarter (April, July, October, and January), we will review the return paid to you. If the total is less than the minimum guaranteed amount for the quarter, we’ll provide a top-up payment in that month to meet the minimum. If the total exceeds the minimum, no adjustment is made—you keep the additional earnings.

Since it’s common for business to gradually build after a new property opens, you may receive a top-up payment in the first quarter, but this is expected to decrease as revenue grows.

At the end of each 12-month period, we’ll review the total return paid to you over the year (excluding any quarterly top-ups). If the payments exceed the annual minimum guarantee, an adjustment will be made to reconcile the quarterly top-ups.

Disclaimer: We recommend that you consult with you legal or tax advisors when considering whether the letting agreement is right for you. This FAQ has been prepared in good faith, however Minor Hotels makes no warranty as to the accuracy or completeness of this document and in no way does it substitute or amend any term of the letting agreement. We accept no liability for any errors or omissions contained in this FAQ.