Map hotel ground lease CAM
Separate every hotel ground lease charge before testing CAM.
Ground rent is its own duty. Percentage rent also needs its own lease test.
Map CAM, taxes, insurance, and power on separate rows. Keep HMA fees in another contract lane.
The signed ground lease controls each duty. Do not treat one public deal as a market rule.
Start with the lease stack
A hotel may use more than one property contract.
Ask these questions first:
- Who owns the land?
- Who owns the hotel building?
- Who signed the ground lease?
- Is there another premises lease?
- Who runs the hotel?
- Which entity got the CAM statement?
Stop if those parties do not match. Map the entities before testing any charge.
DiamondRock's 2025 report lists eight hotels. It also lists one parking area. Ground lease deals cover those sites.
The listed duties differ by property. The filing uses these terms:
| Filing term | Plain meaning |
|---|---|
| Rent | Rent due under the deal |
| Taxes | Tax bills tied to the site |
| Utilities | Site services, such as power or water |
| Insurance | Policy costs tied to the site |
| Terms | Lease dates and options |
| Transfers | Sale or assignment rules |
DiamondRock is one issuer, not a benchmark. It shows why each signed lease needs review.
Build the charge map
Give each charge its own row.
| Charge | Main source | Calculation source | Review owner |
|---|---|---|---|
| Ground rent | Ground lease | Fixed rent schedule | Deal advisor |
| Percentage rent | Ground lease | Defined revenue base | Lease reviewer |
| Premises CAM | Premises lease | CAM statement | CAM reviewer |
| Shared site CAM | Ground lease or site deal | Shared cost statement | CAM reviewer |
| Property tax | Lease tax clause | Tax bill and allocation | Tax reviewer |
| Insurance | Lease insurance clause | Policy or landlord support | Insurance reviewer |
| Utilities | Lease utility clause | Meter or allocation support | Cost reviewer |
| HMA fee | Hotel management agreement | HMA fee schedule | HMA reviewer |
Do not use the same math base for every row. Each contract may define a different base.
Percentage rent may use defined revenue terms. CAM may use area or another stated share.
Ground rent may use a fixed schedule. The documents must prove each method.
Keep rent outside CAM
LoopNet lists ground lease payments outside ordinary CAM costs. It also lists mortgage and debt service there.
Use that as broad category guidance. The signed hotel contracts still control.
Do not hide ground rent inside a CAM total. Do not hide percentage rent there either.
A landlord statement may place costs together. Your map should split them back apart.
Test the CAM branch
Only mapped CAM rows enter the CAM review.
A CAM guide explains that lease text sets CAM scope. It also covers year end statements and review terms.
Use these source checks:
- Signed lease and every change
- CAM definition and exclusions
- Share clause and denominator
- Annual CAM statement
- Landlord cost support
- Tax and insurance support
- Delivery proof
- Review and notice text
Do not use CAM tools to value the ground lease. Do not use them to decide assignment rights.
Term, renewal, transfer, and legal meaning need counsel. Deal value stays with the deal team.
Add stop rules
Stop the CAM branch when any rule applies.
| Stop | Why it matters | Route |
|---|---|---|
| Ground lease is missing | Duties cannot be mapped | Request the lease |
| Paying entity is unclear | Liability may sit elsewhere | Map the entities |
| Charge source is unclear | The wrong contract may control | Ask the deal team |
| Assignment issue appears | Legal rights need review | Send to counsel |
| HMA fee appears | It is not lease CAM | Send to HMA review |
| Owned property cost appears | No tenant lease charge exists | Remove from CAM scope |
One stop may affect one row only. Keep the other charge rows open when supported.
Walk one charge map
This example is fictional. The hotel and contract facts are made up.
Bayfront Hotel LLC leases its land. It owns the building on that land.
The ground lease charges fixed ground rent. It also bills site taxes.
A shared garage agreement bills common site costs. The hotel has a separate HMA.
Map the charges this way:
| Charge | Governing document | Review lane |
|---|---|---|
| Ground rent | Ground lease | Deal review |
| Site taxes | Ground lease | Tax and lease review |
| Garage common costs | Shared garage agreement | CAM review |
| Building insurance | Ground lease | Insurance and lease review |
| Manager base fee | HMA | HMA review |
Only the garage row reaches CAM testing. The signed agreement and statement must match.
The tax row does not become CAM by default. The ground lease controls its treatment.
The HMA fee does not enter the CAM row. Its fee terms need a separate reviewer.
Copy the blank map
Use one row per charge.
| Field | Entry |
|---|---|
| Property | |
| Paying entity | |
| Charge name | |
| Charge lane | |
| Governing document | |
| Contract section | |
| Calculation base | |
| Statement source | |
| Support file | |
| Review owner | |
| Counsel need | |
| Next decision |
Add the exact contract section for each row. Do not use a general lease label.
Add the charge map to client work. The hotel advisor pillar sets that scope.
Before mapping a site, check the leased property screen. Put each fit CAM row in the hotel CAM queue.
HMA costs leave this map for the HMA guide.
Shared site costs need an owner. Pick that role in the specialty advisor hub.
A different firm may own part of the map. The Practice Growth hub names that firm.
Where CAMAudit fits
Your deal team owns the full charge map. CAMAudit fits only the supported CAM rows.
Hotel advisors keep ground lease terms in the deal map.
CAMAudit can review supplied CAM clauses and statements. It may identify items and cite source lines.
It can build a branded CAM audit. Your firm reviews and signs that audit.
CAMAudit does not value the ground lease. It does not review HMA fees.
It may prepare a dispute letter draft. The draft is not legal advice.
Have counsel review before sending.
Use the service line guide to define your scope.