How do I go about investing in hotels

[Demetre Dyse]

So I’ve recently came across a list of off market hotels that my acquisitions team sent me. And I’m thinking of acquiring one of the hotels. I’m wondering how do I get an investor or investors involved that look for these types of deals. And what’s the best way to go about making an offer on the hotel?

[Greg Dickerson]

Originally posted by @Demetre Dyse:

So I’ve recently came across a list of off market hotels that my acquisitions team sent me. And I’m thinking of acquiring one of the hotels. I’m wondering how do I get an investor or investors involved that look for these types of deals. And what’s the best way to go about making an offer on the hotel?

Hotels are a retail business inside of a real estate asset. There is a whole lot to know about hotels and the markets they are in before you take leap much less try to raise investor capital to buy one. One thing is if the Hotels you are looking at are Flagged you need to be approved by the Franchisor or parent company in order to take over the franchise. Some companies are easier than others in this regard.

Start with educating yourself on the space, the markets, the metrics, KPI's, industry language, laws, the different flags and their requirements. You can find a lot of resources online and also speak with some third party management companies in the markets you're looking into.