Four Things to Know Before Investing in Hotels

Four Things to Know Before Investing in Hotels

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Investors often overlook hospitality as an asset class for their investment portfolios. Why? The drivers in typical residential or commercial real estate may not always apply in hospitality. However, the hospitality industry is approaching nearly ten years of consecutive growth. From 2009 to 2017, US hotel gross bookings grew from $116 billion to $185 billion (Deloitte). The potential for robust growth, steady cash flow, and upside for appreciation make hospitality an asset class that you should consider for your investment portfolio. Before “checking in” to your new hotel investment, here are four points to consider.  1. Review demand drivers  2. Make sure the brand is the right fit  3. Evaluate the hotel’s management  4. Consider potential cash flow and tax benefits  Review demand drivers  Investors should consider the risks associated…
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