HOTEL vs apartment complex

[David Smith]

Many apt owners in my area are using airbnb to make more money from short term rentals --- and most local governments are banning airbnb.  But to apt owners will take risks and they can make more by renting by the day. 

Many hotels, especially small ones, will have long-term guests/tenants; so some rooms operate like apt rentals.   Another trend is wework in hotels.

The point is these 2 categories are blending in.

Trying to acquire 1st hotel/motel with 50-100 rooms. I see many comes with restaurant and big lobby.  Pretty attractive asset.    And will try SBA loan. 

Anyone bought hospitality assets recently?  how's your insight and experience?    market is still in a upward trend.    Maybe buying during recession is best timing.   When is the next recession?

[Emilio Ramirez]

I placed an order for the next recession back in 2016, but Amazon keeps telling me it's on backorder. They'll let me know when it ships... :D

Ok. Sarcasm aside. Have you ever run a hotel before or managed a hotel staff? Without that experience it would be extremely stressful to jump into a 50-100 unit hotel. How many housekeepers do you need to accommodate guests? What is RevPAR and where does yours currently stand? Who's managing that restaurant? The hotel or are you leasing it out? How many maintenance guys are on staff? Is the roof still good? When were the sheets last purchased and when does new furniture need to be purchased? Why are people going to stay at your hotel and not the next one? How many rooms do you need to book to break even? How much do you need to charge? Basically, what's your business plan?

If you can answer all of these questions then maybe you are ready to purchase your first hotel. If not, I would look for a night auditor job on craigslist. Then you will learn how to deal with most aspects and costs of hoteling in a short order.