{"id":2451,"date":"2022-11-03T10:45:00","date_gmt":"2022-11-03T10:45:00","guid":{"rendered":"https:\/\/brandportunity.com\/?p=2451"},"modified":"2024-02-01T12:45:09","modified_gmt":"2024-02-01T12:45:09","slug":"a-look-at-the-real-estate-hotel-investment","status":"publish","type":"post","link":"https:\/\/brandportunity.com\/ar\/a-look-at-the-real-estate-hotel-investment\/","title":{"rendered":"A look at the real estate hotel investment?"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"2451\" class=\"elementor elementor-2451\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6f67c973 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6f67c973\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-16 elementor-top-column elementor-element elementor-element-10781b49\" data-id=\"10781b49\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-66 elementor-top-column elementor-element elementor-element-33ec77e2\" data-id=\"33ec77e2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-12177678 elementor-widget elementor-widget-text-editor\" data-id=\"12177678\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>If well considered, investing in hotel real estate can be profitable. Over the last decade, investments in rooms and hotels have been changing. Individual investors are buying rooms whilst hotel operators are venturing into purchasing potential hotel buildings.<\/p><p>This definitive BrandPortunity Hospitality Consultancy guide provides up-to-date information for those interested in hotel real estate.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-16 elementor-top-column elementor-element elementor-element-7e4cbd54\" data-id=\"7e4cbd54\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-55e4672 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"55e4672\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-16 elementor-top-column elementor-element elementor-element-f402600\" data-id=\"f402600\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-66 elementor-top-column elementor-element elementor-element-1d589e77\" data-id=\"1d589e77\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7d3670f0 elementor-widget elementor-widget-text-editor\" data-id=\"7d3670f0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>What is hotel real estate?<\/strong><br \/>Hotels are different from any other property type. They are operationally complex and depend on nightly rentals compared to short or long-term leased apartments or offices. Hotels are highly responsive to changes in the market, such as low and high seasons. This flexibility has meant that the industry faced massive disruptions during the pandemic.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-16 elementor-top-column elementor-element elementor-element-3c18a265\" data-id=\"3c18a265\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4c1ef596 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4c1ef596\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-16 elementor-top-column elementor-element elementor-element-68dec500\" data-id=\"68dec500\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-66 elementor-top-column elementor-element elementor-element-2c3dd691\" data-id=\"2c3dd691\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7633d6ef elementor-widget elementor-widget-text-editor\" data-id=\"7633d6ef\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Types of Hotel Investments<\/strong><br \/>Hotels are categorised according to their service offerings and available amenities.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-16 elementor-top-column elementor-element elementor-element-7734b68c\" data-id=\"7734b68c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-61ae300c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"61ae300c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-16 elementor-top-column elementor-element elementor-element-107bef1d\" data-id=\"107bef1d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-66 elementor-top-column elementor-element elementor-element-79e87ad1\" data-id=\"79e87ad1\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7527e67d elementor-widget elementor-widget-text-editor\" data-id=\"7527e67d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Full-Service Hotel<\/strong><br \/>Full-service hotels offer accommodation, retail, spas, event spaces, restaurants, bars, room service, and sporting facilities. They rely on large volumes of staff, and the hotels include world- famed chains such as Hilton, Marriott, IHG and Accord.<\/p><p><strong>Select Service Hotels<\/strong><br \/>This category includes hotels such as Aloft, Hilton Garden Inn and Hotel Indigo. It&#8217;s a mix of full and limited-service hotel offerings<\/p><p><strong>Limited Service Hotels<\/strong><br \/>These hotels are similar to Comfort Inn and Hampton Inn, hotels that don&#8217;t offer any restaurant or banquet facilities. Some hotels offer amenities such as a swimming pool or fitness centre.<\/p><p><strong>Extended Stay Hotels<\/strong><br \/>Embassy Suites, Staybridge, and Hiltons&#8217; Homewood Suites are great examples of extended stay hotels. They provide temporary large suite-style rooms with at-home features such as a kitchenette and laundry. They cater for families undergoing relocation and business travellers on longer assignments.<\/p><p><strong>Budget Hotels<\/strong><br \/>Hotels such as Days Inn and Ibis Hotels keep the costs to a minimum by providing limited amenities, services and assistance.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-16 elementor-top-column elementor-element elementor-element-3affb9cf\" data-id=\"3affb9cf\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6f225aba elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6f225aba\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-16 elementor-top-column elementor-element elementor-element-3b334630\" data-id=\"3b334630\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-66 elementor-top-column elementor-element elementor-element-31566476\" data-id=\"31566476\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-305b4a99 elementor-widget elementor-widget-text-editor\" data-id=\"305b4a99\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><b>Key Data to Consider<\/b><\/p><ul><li><span style=\"font-weight: 400;\">Average Daily Rate (ADR) \u2013 divide room rate by rooms sold over a select period<\/span><\/li><li><span style=\"font-weight: 400;\">Revenue Per Available Room (RevPAR) \u2013 total room revenue divided by the number of available rooms<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">It is essential for hotel owners and operators to understand the insights in daily, weekly, monthly and annual RevPAR trends. Comparing competitors\u2019 RevPAR hotels to accurate performance analysis is beneficial.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1ef579ea elementor-widget elementor-widget-text-editor\" data-id=\"1ef579ea\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-16 elementor-top-column elementor-element elementor-element-767f8c3c\" data-id=\"767f8c3c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ede1006 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ede1006\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-16 elementor-top-column elementor-element elementor-element-7f7c4918\" data-id=\"7f7c4918\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-66 elementor-top-column elementor-element elementor-element-45852d1c\" data-id=\"45852d1c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5d7bf435 elementor-widget elementor-widget-text-editor\" data-id=\"5d7bf435\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><b>Key Elements for Hotel Success<\/b><\/p><p><span style=\"font-weight: 400;\">There are two groups \u2013 tourism and business. Business travel tends to be during the week, whilst tourists drive demand at weekends and peak holiday seasons. To run a hotel business, operators or hotel owners should know the key indicators that drive success.<\/span><\/p><p><span style=\"font-weight: 400;\">It&#8217;s essential to drive an optimal business mix in any specific market. Seasonal demand is commonplace for ski and beach resorts. Food and beverage-themed events and entertainment can also boost sales and income.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-16 elementor-top-column elementor-element elementor-element-4b9a4adc\" data-id=\"4b9a4adc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-28112b72 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"28112b72\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-16 elementor-top-column elementor-element elementor-element-70e13266\" data-id=\"70e13266\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-66 elementor-top-column elementor-element elementor-element-250c7faf\" data-id=\"250c7faf\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-41daf47b elementor-widget elementor-widget-text-editor\" data-id=\"41daf47b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><b>Getting Started<\/b><br \/>Investors should;<\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Conduct an ADR and RevPAR metric across a group of similar hotels in the same market<\/span><\/li><li><span style=\"font-weight: 400;\">Assess operating efficiency\u00a0 and profit margin<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consider price and profit. A budget hotel may be far more successful than a luxury hotel<\/span><\/li><li><span style=\"font-weight: 400;\">Review demand drivers\u00a0 such as brand and hotel management, cash flow and tax benefits<\/span><\/li><li><span style=\"font-weight: 400;\">Consider risks, gather informational data and carry out due diligence<\/span><\/li><li><span style=\"font-weight: 400;\">Ensure the hotel is attractive to business and leisure and consider growth in both markets<\/span><\/li><li><span style=\"font-weight: 400;\">Brand matters. Assess value propositions and brand hotel operators for cash flow, operating and running costs<\/span><\/li><\/ul><p><b>Hotel Value<br \/><\/b><span style=\"font-weight: 400;\">A hotel valuation should include various cash flows, in addition to customer service, reputation, food and beverage offerings, people and ambience.<\/span><\/p><p><b>Income Capitalisation<br \/><span style=\"font-weight: 400;\">The present worth of future benefits determines income production.<\/span><\/b><\/p><ul><li><span style=\"font-weight: 400;\">Value the hotel as an operating business using the Discounted Cash Flow method (DCF), the most used model for hotel and land real estate valuations.<\/span><\/li><li><span style=\"font-weight: 400;\">Determine if it&#8217;s better to buy or build. This does not consider income or economic factors.<\/span><\/li><li><span style=\"font-weight: 400;\">The sales comparison approach focuses on determining ranges and pricing momentum based on prior sales of comparable hotels.<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">A new post-pandemic trend is on the rise, and many hotels are entering the market to accommodate the demands of millennials. Hotels are sizeable investments in time, effort and money. Successful hotels are financially lucrative and can be immensely satisfying.<\/span><\/p><p><span style=\"font-weight: 400;\">Buying and running a hotel could be for some investors and operators a great idea and investment. Success in the hospitality business is financially lucrative and satisfying on a business as well on a personal level. However, always remember: <\/span><\/p><ul><li><span style=\"font-weight: 400;\">Location, location, location<\/span><\/li><li><span style=\"font-weight: 400;\">Work, work and work more<\/span><\/li><li><span style=\"font-weight: 400;\">Brand is important <\/span><\/li><li><span style=\"font-weight: 400;\">Guest experience is even more important and key to success<\/span><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-16 elementor-top-column elementor-element elementor-element-1fbdff0c\" data-id=\"1fbdff0c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-40cd7866 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"40cd7866\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-16 elementor-top-column elementor-element elementor-element-3bdc4e7b\" data-id=\"3bdc4e7b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-66 elementor-top-column elementor-element elementor-element-396a906b\" data-id=\"396a906b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6b26e9d5 elementor-widget elementor-widget-text-editor\" data-id=\"6b26e9d5\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>to stay in touch:\u00a0<a href=\"mailto:hello@brandportunity.com\">hello@brandportunity.com<\/a><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-16 elementor-top-column elementor-element elementor-element-59235d73\" data-id=\"59235d73\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>If well considered, investing in hotel real estate can be profitable. Over the last decade, investments in rooms and hotels have been changing. Individual investors are buying rooms whilst hotel operators are venturing into purchasing potential hotel buildings. This definitive BrandPortunity Hospitality Consultancy guide provides up-to-date information for those interested in hotel real estate. What [&hellip;]<\/p>","protected":false},"author":1,"featured_media":2452,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"_links":{"self":[{"href":"https:\/\/brandportunity.com\/ar\/wp-json\/wp\/v2\/posts\/2451"}],"collection":[{"href":"https:\/\/brandportunity.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/brandportunity.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/brandportunity.com\/ar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/brandportunity.com\/ar\/wp-json\/wp\/v2\/comments?post=2451"}],"version-history":[{"count":4,"href":"https:\/\/brandportunity.com\/ar\/wp-json\/wp\/v2\/posts\/2451\/revisions"}],"predecessor-version":[{"id":2456,"href":"https:\/\/brandportunity.com\/ar\/wp-json\/wp\/v2\/posts\/2451\/revisions\/2456"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/brandportunity.com\/ar\/wp-json\/wp\/v2\/media\/2452"}],"wp:attachment":[{"href":"https:\/\/brandportunity.com\/ar\/wp-json\/wp\/v2\/media?parent=2451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brandportunity.com\/ar\/wp-json\/wp\/v2\/categories?post=2451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brandportunity.com\/ar\/wp-json\/wp\/v2\/tags?post=2451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}