Hotels Acquisition
I have a call with HR about a hotel acquisitions job. Company deals in smaller, boutique properties. I have limited experience with hotels (mostly deal with your standard Core investments) but know that occupancy, daily rate, RevPar, and total price per key are important. If anyone has other important metrics or sites to research, that would be great. This forum usually has someone with good experience and has always been helpful.
Before you can buy a hotel, you obviously have to acquire the land for the hotel. Keep in mind that to get a building permit you must buy all lots in the same group.
Where people get confused is when you need 4 houses first, before you can initiate construction of the hotel property. Each property in the same lot must also have 4 houses before you can legally initiate construction of a hotel. The stupid thing is that hotels and houses usually cost the same price. With costs ranging from $50 to $200. Meaning that all in, you will spend $700 to $2600 simply to construct one hotel.
Depending on location, a hotel could yield anywhere from $250 to $2000 per rent, so your upfront cost are deep, but the IRR is generally high enough to make it worth it.