Trying to get started in Hotels

[Julia Allred]

Does anyone have any experience with Hotels?

[Jimmy Klein]

@Julia Allred

Red flags could be anything from deferred maintenance, new hotel supply, competing brands, closure of demand generators (corporate and leisure). 60% CoC can be achieved but depends on the deal. I highly doubt the downtown Marriott in Los Angeles will ever see those returns, but the no name 25 room motel in the middle of nowhere in Wyoming is very likely to achieve that. Its a matter of self involvement, the more involved you are, the higher the return. I have done three deals where we achieved more than 40% CoC in year 1...but its a matter of being involved consistently and marketing timing. They were smaller value-add deals.