I came across a few hotels on sale with a long (10-20-30 years) lease in place. The return on investment is high (7% or so) and is adjusted for inflation yearly or every two years. I can see potential problems with 1) the hotel losing money, and the managers just leaving, and 2) the managers not taking care of the building starting a few years before the lease expires, which would require extensive refurbishment.
However, over the time of the lease the price of the building would keep increasing, and after 20 years or so you have a building that is worth double as much.
Does anybody have any insights into this business sector?