France: Court decides on notice requirements according to French Tourism Code

Article L.311-2 of the French Tourism Code requires any hotel operator wishing to carry out certain infrastructure and facilities improvements in his establishment to previously notify the lessor. The notice is required to include an execution plan and a cost estimate. Provided such notice is given, the lessor cannot claim any rent increase based on the improvements brought about by the execution of such work (Article L.311-3), during the term of the lease or of the renewed lease following it for a period of twelve years.In a case recently decided by the Court of Appeal of Aix-en-Provence, a provision in the lease agreement authorised the hotel operator to create six new rooms and redo the flooring. However, this work was carried out without the lessor having been notified. Upon renewal of the lease, the lessor had sought a higher rent based on the improvement to the building resulting from the work carried out.The court of first instance of Nice had held that due to consent having already been given in the lease agreement, prior notice was unnecessary. However, the Court of Appeal of Aix-en-Provence reversed the judgement on the ground that the renewed rent should be calculated based on the condition of the premises upon renewal of the lease. Even explicit contractual provisions concerning the performance could not replace the requirement of notice.Case details: CA Aix-en-provence, 11th division, section A, 19 October 2012, Welcome Immeuble v SARL des Hôtels Gabois Sag

Leave a Comment