-------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

My assumption is that these hotels are listing as brands/businesses and not as the owner or GM of the hotel.

You'll notice in these subto assumption deals the length of the exit, the risk curve will get very sharp on you. 

Used what I know from wholesaling to come up with the estimations The numbers is used are based on a these assumptions:- Cost to build* (2024) = 150/sqft National average, 141/sqft Tennessee Average (Source: Houzeo  https://www.houzeo.com/blog/how-much-does-it-cost-to-build-a-house-tennessee/#:~:text=The%20average%20cost%20per%20square,idea%20of%20the%20construction%20costs.)- All in Cost = Cost to build * Square foot  - Sales Price = All in Cost + (All in cost * 20%)* Covers contractor and soft cost on either fee based or cost+- Profit = (Sales price - (Sales Price * 7%))* - All in Cost   accounts for agent fees and closing cost- Initial List Price = Sales price + 10%      A buffer to test market absorption- Break Even being All in cost, point where everyone is paid except me. - List price is to test the market absorption at "x" price. 250k land + build.

My fear is the lender calling the loan due because I wouldn't have the cash available to pay it off.I don’t know of many cases where a lender would allow an assumption let alone a “subject to “ situation.  

I ran some very basic numbers on option 1 and if you can get a ST/MT rental per your comments and other assumptions you list, this could be a deal for you.

Would love to hear your thoughts on whether pursuing this adjustment makes sense or if I should reconsider.For reference, I’ve included the following assumptions in my calculations:5% for maintenance3.5% for vacancy10% for capital expenditures and management feesThanks! 

Underwrite with conservative assumptions.

To me STR and hotel caters to different groups of travelers and so despite competition as long as the travel demand of Hawaii remains (as you pointed out is a robust assumption) I think both will continue to do well.  

You're making a lot of assumptions that are flat-out wrong.It's whether there would be a benefit from an association for a particular person.