CGH: Defending the rights of landlords in tourist residences

Defending the rights of landlords against the operator CGH Residences & Spas

Our firm is currently assisting more than 40 landlords in their disputes against CGH Residences & Spas, the operator of numerous tourist residences in the Alps. These disputes highlight crucial issues related to commercial leases, the non-commercial furnished rental property (LMNP) and commercial furnished rental property (LMP) status and compliance with para-hotel classification.

CGH Residences & Spas: a mountain property portfolio, a dispute that is growing

CGH (Compagnie de Gestion Hôtelière) operates around thirty upmarket tourist residences, particularly in Savoie and Haute-Savoie. Among the most iconic:

• Le Kalinda (Tignes), Les Clarines (Les Menuires), Les Cimes Blanches (La Rosière), Les Chalets de Jouvence (Les Carroz), La Reine des Prés (Samoëns), Le Cristal de l’Alpe (Alpe d’Huez)…

Our firm intervenes to ensure that the rights of the owner-landlords are respected.

The specific legal aspects of the commercial lease in tourist residences

The lease signed with CGH is a commercial lease subject to the provisions of the Commercial Code. However, in practice, many abuses appear:

• Clauses of cancellation or non-renewal;
• Failure to comply with operating obligations (inadequate hotel-related services, poor maintenance);

These breaches can result in a loss of rent, damage to the profitability of the property, or even a challenge to the LMNP or LMP tax regime.

Serious consequences for individual investors

The owners concerned are, for the most part, individuals who have invested in furnished tourist accommodation. They are faced with:

• A depreciation of their assets;
• A request to reduce rents to the detriment of lessors;
• An excessive compensation for eviction of three years’ turnover;
• Attempts at unilateral termination by the operator.

In the face of these risks, a clear and collective legal response is essential.

Our strategy: to regroup, negotiate and act

Our firm has implemented a three-step process:

1. Complete legal analysis of each CGH contract;
2. Group negotiation, when an amicable solution is possible;
3. Targeted legal action, particularly in the case of:
   • Unpaid rent;
   • Breach of contract;
   • Termination of lease and refusal to renew commercial lease.

What we offer

We actively assist landlords in CGH residences.

Are you a landlord in a CGH residence?

Are you experiencing problems with the management of your property?

Contact us for a personalised review of your lease.

Our firm acts exclusively in the interests of landlords: expertise in commercial leases, LMNP/LMP taxation, litigation against operators, defence of tourist classification.