Are hotels always more profitable than apartment complexes?

[Account Closed]

Common sense, along with my own research, would tell you that a hotel is a more profitable investment than an apartment complex. They are basically the same building, except that hotels charge a higher rate and the guests turn over faster. Much more rent is collected from a hotel.

To give specific examples, there is a $4,500,000 hotel for sale in Orlando, FL that profits $1,100,000/year.... there is also an apartment complex for sale for $5,300,000 that profits just $540,000/year.

How do these two types of properties act in a recession? Obviously, people will always need a place to stay, but they might not necessarily need luxury vacations when times are hard.

Still, all things considered and all other factors remaining the same.... I think hotels would make the better investment.