Experienced Hotel Investor

[John Wijtenburg]

Hi BiggerPockets community!!

I joined a few months ago, but I just recently started listening to the podcast and finding how helpful this forum can be. I’m excited to engage with everyone to find areas to add value. My experience is primarily in hotel acquisitions, asset management, and dispositions, but I've also been a multifamily broker.

Please feel free to reach out on anything that you think I could be helpful.

John

[John Wijtenburg]

@Nik S.

I've been struggling with an answer, as there are many factors to consider. Quality Inn & Suites is a good midscale brand, but your success is very dependent on location and building. I'll just run through a list of where I'd look first:

• Occupancy and ADR penetration vs. comp set - is there room to improve revenue?
• Interior or exterior corridor?
• Deferred maintenance - do you expect a brand-mandated property improvement plan (PIP)?
• Age of the building
• Competitive new supply - Quality Inn tends to be on the lower end of the market so you'll probably benefit from a rising tide, but older properties are severely impacted by new economy scale or midscale supply enters the market
• NOI margin should be >30% - if it's not, your RevPAR is too low or operations are unnecessarily fat
• It may be of benefit to align with a third-party operator that has some "skin-in-the-game," where you step into a joint venture limited partner role with major decision rights

This is a very high-level list that doesn't account for location, seasonality, and other factors that may have a material impact on performance. Please feel free to message me to go through details. I'm happy to sign an NDA to help you out.