Hotel/Motel Investments

[Andrew Warner]

Hello BP!

I was wondering what information experienced investors look for when buying Hotel/motel investments. What information is most important for analyzing these deals? If any investors in this niche could enlighten me I would appreciate it. I am a real estate agent in Arizona and am planning on creating a Hotel/motel database of all the major properties in this state. Knowing what information is most important to investors when looking at this property type will help! 

Thank you!

[Purvee K.]

@Andrew Warner I am a broker in CA with focus on hotel/motel and RE transactions. Also, I grew up in the motel business so know a ton about whar works, what doesn’t, and what to look for. Since not too many looking at this niche ans responding on BP, thought I respond with some view if it helps. Motel business has differences on what makes it attractive to someone. It ranges from wanting a fully managed properties to self managed to owner run. Some owners buy it for the lifestyle of live/work and some purely for investment which means cash flow is important. In this business sustainability of the income against expenses and location are the most important. Beyond that, condition, flag vs. independent, additional income, future growth, PIP vs. reno to increase occupancy are the other things that go into the consideration.