Recent years, several developments are visible within the theatre sector. Most theatre-organisations throughout the Netherlands cope with the same challenges. Revenues are decreasing and the very limited use of the theatre buildings is an issue. The buildings should be used in a different way by their users. In many cases, theatre organisations see an expansion of the hospitality function as an answer to these financial and social challenges. The organisations aim to (1) gain more revenues, (2) transform their building into a “living room of the city” and (3) improve the “theatre experience” for visitors of the performing arts. However, in the end the synergy between theatre- and hospitality-organisations turn out to be very complex and it does not always lead to added value to both organizations. A new procesmodel is presented in this research; the theatre-real-estate-strategy-model. The model provides guidance to theatre organizations in four areas: the structure of the process (“WHEN”), content (“WHAT”), involvement (“WHO”) and useful tools (“HOW”). The model is based on a literature study to the real estate management theory, the projectmanagement theory and the procesmanagement theory. This led a theoretical framework. Based on this framework, two casestudies are carries out to gain insights from practice.