Possessory Interests in Hotel Real Estate

Erich Baum | January 18, 2019

By Erich Baum What is a Possessory Interest? A possessory interest is created when a private-sector tenant is granted exclusive use of real property (land and/or building) that is owned by a tax-exempt entity, typically a municipality or a state or federal government agency. The right to occupy and use the land and/or building is usually conferred via a lease. Examples Please? Because of the federal and municipal government's extensive ownership interests in the nation's capital, many possessory interests have been created in Washington, D.C. Two examples involving hotels follow: The Trump International Hotel opened in September 2016...