Residathenes hotel residence

Dispute between Residathenes and several co-owner-lessors

The judgment handed down by the Paris judicial court on October 8, 2024 concerns a dispute between Residathenes and several co-owner-lessors. Residathenes, which took over the rights of R.B.L. in 2010, operates premises used as a hotel residence.

Orders to pay rent arrears and respect the purpose of the leases

The co-owner-landlords issued summonses to pay rent arrears and to respect the destination of the leases, invoking the resolutory clause.

Residathenes operates a hotel instead of a hotel residence

The landlords went to court to have the leases terminated for non-payment of rent and change of use of the premises, claiming that Residathenes was operating a hotel instead of a hotel residence. Residathenes requested payment terms and suspension of the effects of the resolutory clause, arguing that it had paid the arrears within the time limits set by the summary orders.

The court rejected the landlords’ request to acquire the resolutory clause for non-payment of rent, noting that Residathenes had paid the arrears on time.

Termination of the lease by acquisition of the resolutory clause (operation of a hotel instead of a hotel residence)

However, he noted that the resolutory clause had been acquired for non-compliance with the purpose of the leases, establishing that Residathenes was operating the premises as a hotel, in violation of the terms of the leases, which stipulated operation as a hotel residence.

Eviction of Residathenes

The court ordered the eviction of Residathenes and all its occupants from the premises located at [Address 4] at [Location 37], within two months of service of the judgment. It also ordered Residathenes to pay an occupancy indemnity corresponding to the amount of the last rent in force, plus charges, until the premises are effectively vacated.

830,418 euros in occupancy indemnity arrears

In addition, Residathenes was ordered to pay the co-owner-lessors a total of 830,418 euros in occupancy indemnity arrears, with interest at the legal rate from June 3, 2022, broken down between the various co-owners. The court rejected Residathenes ‘ request to defer payment of its debt, ruling that the company had not demonstrated any recent financial difficulties or good faith.

Finally, Residathenes was ordered to pay each of the co-owners the sum of 3,000 euros under article 700 of the French Code of Civil Procedure, and to pay the costs of the proceedings, including the costs of the summons to pay. The court ordered provisional execution of the judgment, given the age of the dispute. 

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