French Leaseback : disclose the operating account

Articles L. 321-2 of the Tourism Code and R. 123-193 of the Commercial Code stipulate that the operating account that the operator of a classified tourist residence must keep for each residence and communicate to owners who request it, must only show operating expenses and income and is not to be confused with the income statement, of which it is only one component. In considering that the accounting information provided by the tenant at the landlord’s request was insufficient and ordering her to provide the operating accounts for the tourist residence, subject to a penalty payment, the judgment, after noting that the documents provided included commercial data, fixed expenses, variable expenses, EBITDAR and EBITDA rates, found that they were incomplete in that they did not include financial income and expenses, exceptional income and results, and depreciation and amortisation, and that they did not show the calculation of the result. In so ruling, when financial income and expenses and extraordinary income and results are not items in the operating account but in the income statement, the Court of Appeal violated the above-mentioned text.

Court of Cassation, Commercial, Financial and Economic Chamber,

21/05/2025, No. ECLI:FR:CCASS:2025:CO00282, No. 24-12.695

Obligation to disclose the operating account for tourist residences: clarification from the Court of Cassation (Com., 21 May 2025, No. 24-12.695)

In a ruling dated 21 May 2025, the Commercial Chamber of the Court of Cassation provided important clarification regarding the scope of the obligation incumbent on operators of classified tourist residences when a lessor requests disclosure of the residence’s operating account.

This ruling is particularly useful in disputes between landlords and operators concerning the economic transparency of the operation, particularly during rent renegotiations, proceedings to determine the rental value in court, or in the context of an action to verify the accounts.

1. The legal framework: a mandatory but limited operating account

Article L. 321-2 of the Tourism Code requires the operator of a classified tourist residence to keep a separate operating account for each residence and to disclose it to owners who request it.

Article R. 123-193 of the Commercial Code specifies the definition of accounting documents.

The Court points out that:

➤ The operating account is not the income statement.

It is only one component, limited to operating expenses and income allocated solely to the residence concerned.

These texts therefore do not require the disclosure of exceptional results, financial expenses and income, or depreciation allowances, which fall under the operator’s overall income statement, not the residence.

2. The error of the Court of Appeal: confusion between the operating account and the income statement

In this case, the lessor had obtained documents including:

• commercial data,
• fixed expenses,
• variable expenses,
• EBITDAR and EBITDA rates.

However, the Court of Appeal considered these elements to be insufficient on the grounds that the following were missing:

• financial income and expenses,
• exceptional results,
• depreciation and amortisation,
• and the calculation of the final result.

It therefore ordered, under penalty, the disclosure of new accounts.

The Court of Cassation rejected this reasoning.

👉 The information requested by the Court of Appeal relates to the overall income statement, not the operating account of the residence.

By requiring information that exceeded the legal definition of the operating account, the Court of Appeal violated Articles L. 321-2 and R. 123-193.

3. Practical implications of the ruling for landlords of tourist residences

This ruling confirms that landlords can request disclosure of the operating account, but it also sets limits.

✔ What the operator must disclose:

• the residence’s operating income (rent, accommodation revenue, ancillary services allocated to the residence);
• the operating expenses attributable to the residence (variable expenses, fixed expenses, internal costs allocated to local operations) .

✘ What the lessor cannot require in this context:

• financial expenses and income,
• extraordinary income and expenses,
• depreciation allowances,
• consolidated net income of the operating company.

These items are external to the actual operation of the residence and fall under the operator’s general accounting.

4. A strategic tool for lessors (to be used with precision)

Even when limited to operating data, this account remains a powerful tool for:

• monitoring the proper management of the residence;
• verifying the consistency of rents paid;
• detecting any under-reporting of income;
• supporting a request for a judicial review or determination of the rental value;
• supporting liability action against the operator in the event of mismanagement.

However, it is essential, in requests for disclosure, to refer specifically to the legal concept of an operating account, in order to prevent the operator from hiding behind a restrictive interpretation or a court from considering the request excessive.

5. Conclusion

The ruling of 21 May 2025 provides welcome clarification:

the operator must provide a complete operating account, but this document should not be confused with the income statement or the overall financial statements.

This is an important clarification for landlords, particularly in a context where operators frequently cite ‘operating losses’ to justify rent reductions or refuse revaluations.

For landlords, the strategy becomes twofold:

• demand precisely what the law requires,
• use this data to restore an economic balance that is too often unfavourable.

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