Hotel investing means owning lodging properties that rent rooms to guests on a nightly basis, generating revenue through room rates, occupancy, and ancillary services.
Log in to followA broker sent me a 48-key select service property in a smaller city, and the expense list on the pro forma has a line for management fee at 3% of gross revenue. I read that as the…
A DST offering came across my desk with two documents that don't agree with each other. Single asset, 96-key limited service hotel, upper-midscale flag, secondary sunbelt market o…
Land is my usual thing and the appeal there is that nothing needs doing. Hotels seem like the opposite of that in every way, and yet this room is filed under passive hold, which c…
Notice came Friday. The sponsor on a 78-key leisure-destination hotel wants $1.1M of new money across the LP class, $780k of it for working capital through shoulder season and $32…
110-key select service hotel near a regional airport, $23M capitalization, $8.1M equity raise. I was in for $400k, which was big enough that they'd talk and small enough that I ha…
I've been reading two offering decks side by side and the demand pages read like different asset classes. The first is an 80 key select service property where roughly half the roo…
Working out what passive hotel exposure should actually look like for me, and the two structures I keep landing on behave completely differently in a downturn. Structure one, own…
I'm pricing out the operating side of a small independent, roughly 30 rooms, before I go any further on the numbers. Someone told me the property management system for a place tha…
A partner in an 88-key extended stay wanted out badly enough to sell into a market of one. The units had been marked by the sponsor at $300k. I paid $186k, in cash, with the spons…
This belongs in the passive room as a warning about the word. A friend who'd managed restaurants found a 9-room inn in a small tourist town, walkable to a state park entrance, doi…
I've been reading hotel listings because a broker sent me a 42-room limited service property near a highway interchange. The flyer leads with "RevPAR $58" and then in smaller prin…
Under contract review on a 62-key exterior corridor extended-stay in a secondary market, one interstate exit, hospital and two distribution employers inside four miles. Asking $4.…
I own two small multifamily buildings and my agent handles both on landlord policies. A 19-room motel two towns over came up at a price that doesn't seem crazy and I asked the sam…
$340k of a $4.1M equity raise, LP units, no control, no consent rights beyond the usual major-decision list. The documents came in three pieces: a franchise license agreement, a m…
Looking at two LP offerings on the same rough size, both 90 to 110 keys, both in secondary markets, and the only real structural difference is affiliation. One is a hard franchise…
Closed and done, so this is the postmortem. 74-key hotel in a beach town, three blocks off the water, no meeting space, heavy leisure. $180k into an LP raise of $6.4M against a $1…
Looking at a select service property where the P&L looks clean until you get to the segmentation report. Two crew contracts, both energy sector, are 41% of room nights at a negoti…
Small town, two hours from anything, single-story L-shaped motel, 14 units, all with exterior doors onto the parking lot. Seller is 74 and wants out, asking $410k, says he'd take…
Rural market, interstate exit, 78 keys, seller wants $2.1M which is about $27k a key. Trailing RevPAR $47, occupancy in the high 50s. The property is a 1998 build and the franchis…
A sponsor I've co-invested debt with twice is buying a 120-key full-service hotel out of a lender-driven sale. Purchase $8.9M, so about $74k a key on a property that was built for…