Having money lying around and not being spent is not always the best show of being successful. What good is money that is not being used for anything? In order to make money, one needs to be willing to spend money, that is, to invest. Investing can also be a career on its own, a complete business in which you are rewarded for picking the right things to put money towards and end up better off down the line.

Investors know full well how intriguing it can be to deal with this type of work. It is always different, every investment is unique, and there is constantly something new to learn and become a part of. Actually, the most difficult thing to do is pick an investment particularly when you are just starting or if you deem a market or industry that you know next to nothing about.

For example, a lot of people like to invest in real estate. Buying and selling or perhaps building and renting office and living space is an enticing career that not everyone can do. There are many different things to worry about as well as a lot that can go wrong. However, if you manage to start slow and build on it while making smart moves along the way, there is no reason to think you will fail.

However, what if you pick a slightly different type of investing in buildings and spaces that does not deal with homes and offices? Have you ever heard of hotel investments and what do you know about it? It is an area of investment not everyone thinks of when they aim to pick new investments which is why it is ripe for the taking. In this article we talk about investing in hotels and how to analyze a good hotel investment. To learn more about hotel investment and the general industry around it, make sure to check out

The Location


In the world of accommodation, location is everything. Without a good location a hotel cannot offer enough to the tourists no matter its other features and amenities. Everyone travels for the same reason, to experience a new place and a new culture in the best and most efficient way possible. In order to do that you need to be as close to the community hubs as possible. To tour the sights, you need to be close to them.

Of course, for summer and winter holidays, the accommodation needs to be situated as closely to the beaches and ski runs. Nobody enjoys walking and having to use public transport in order to get somewhere. Sometimes it is necessary, but hotels with good locations are always preferred among the tourists and it makes perfect sense. When browsing a hotel to invest in, no matter if you are buying one, having one built, or investing in an already established place, you should evaluate the potential of its location first. Everything else comes second.

Popularity and Status

The location may be the most important thing overall, but another crucial aspect of picking the hotel is how famous it is and how much people want to visit it. Not every hotel is made equal and there are huge differences between them. There is a reason why some of them are so big in the industry and why everyone wants to visit them. They have a special feature that nobody else has, they are well-known for their programs, restaurants, personnel, or culture. Perhaps they are among the most expensive and the glamour and prestige draws in the VIPs?


Whatever it may be, you need to know about before making an investment. Turning a hotel into an exclusive place where only certain types of guests can come to is also a great investment as it will surely drive the revenue up and allow you to make even more changes in the future.

What are the Guests Saying?

In the world of the internet and the abundance of information there is no need to guess what people think about things. You can always Google the information or have a detailed search about it on the web. When it comes to learning which hotels are a potential investment, all you need to do is look for the ratings and reviews and read what the people are saying about it. Basic rating systems of 1 to 5 stars are a great tell especially if they have hundreds or even thousands of entries.

However, it is the reviews that tell the biggest story, literally, since they are basically testimonies of the guests who have stayed there. Sometimes it is even possible to find experiences, both good and bad, from the former employees. If you like what you see and if you like the hotel anyway, it is a great opportunity to invest. If, on the other hand, you do not really like what people are saying and if you think it is a waste of time, you can always skip it and look elsewhere. Remember however that certain investments can turn things around and you may be able to secure a better deal with a hotel that has been struggling for a long time.

Mind the Type of the Hotel


Last but not least, the investment needs to be based on the type of the hotel and the kind of services it offers. Is it a full-service, select service, limited-service, extended stay, or budget hotel? It matters a lot which one of these you are thinking of investing in because important matters like profit margins, per room investment numbers, the cost of capital, sale value, and investment returns all depend on it. It can also be a smaller hotel, a bed and breakfast, or even a motel.

A cottage in the woods or a lake house may also count as a hotel investment because you have guests after all and you need to give them proper amenities to work with. Knowing exactly what kind of a hotel it is will dictate many aspects of your investment and will directly be responsible for the money you can expect from this whole endeavor.