Hotel Investment overview
Hotel industry is a business that cannot operate without proper real estate. It is a very dynamic industry that is heavily dependent on domestic and international trends. Every room of the hotel has to be sold again and again every night. Therefore investors should have clear goals that they want to reach with their real estate investment into a hotel. As in general the three most important factors before making decision that investor must evaluate are “location, location and the location¨.
Some investors choose to own a “trophy¨ hotel asset that is similar to piece of art with almost no cash flow yield, or even negative cashflow, where the expenses are equal or higher than the income.
Acquisition process
· Choosing the right investment strategy
· Sourcing the right investment
· Signing non disclosure agreement
· Proper due diligence process
· Placing letter of intend
· Setting price goal
· Making a business plan
· Negotiating hotel acquisition deal