Terms, explained
The buyback, explained: invested amount plus 25%, five years from full payment
The contractual buyback is written into the unit agreement: the invested amount plus 25%, five years from the date of 100% payment. The base is the listed price minus the applicable fixed discount, not the cash you paid. It is not an annual rate, a market valuation or an assurance by the hotel brand. As of October 2026.
Published 16 October 2026 · facts as recorded on 16 October 2026
Buyers hear "1.25 times" and divide by five. That arithmetic misreads the term. The buyback is one figure, at one date, on one base, and the base is not the number on your receipt.
The base
The return and the buyback are calculated on the invested amount, which is the listed price minus the fixed discount that applies to your plan. A 5% payment incentive under the 45-day or 90-day plan lowers what you pay, not the base. The ten-quarterly plan states no fixed discount, so its invested amount is the listed price.
The date
The contractual buyback is the invested amount plus 25%, five years from full payment, under the unit agreement. It is not an annual rate, a market valuation or an assurance by the hotel brand.
Five years from full payment means from the date your 100% payment is received, under every plan, including ten quarterly instalments. The buyback falls due five years after the date the contractual return period starts.
What it is not
It is not an annual return: 25% over five years is the uplift on the base, separate from the yearly contractual return. It is not a market valuation: After full payment you may sell to an eligible purchaser at a time you choose; the successor buyer takes on the continuing leaseback arrangement. No immediate buyer or sale price is implied. The unit agreement names the party that owes you the contractual return and the buyback; a brand mark describes the operator affiliation and is not a party to either.
Questions this page answers
Is the buyback automatic at year five?
It is a written buyback under the unit agreement, and the agreement sets its conditions. Ask for the clause in the diligence pack and read it with your counsel.
Does the 5% payment incentive reduce my buyback?
No. The incentive reduces cash payable only. The buyback and the contractual return are calculated on the invested amount: the listed price minus the applicable fixed discount.
What if I bought on ten quarterly instalments?
The five years run from the date your 100% payment is received, so the buyback date is five years after the last instalment, not after the first. That plan states no fixed discount.
Can I keep the unit instead of taking the buyback?
After the five-year period, profit sharing alone applies. No contractual return continues. After full payment you may sell to an eligible purchaser at a time you choose; the successor buyer takes on the continuing leaseback arrangement. No immediate buyer or sale price is implied.
Who pays the buyback?
The unit agreement names the party that owes you the contractual return and the buyback; a brand mark describes the operator affiliation and is not a party to either.
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