What Property Type is Right for Your Investment Style?
How do you determine the best property type for you as you move forward with your investment? There are a variety of factors to consider, including the desire to be hands-on or more passive, previous industry experience, vision for your property, and personal investment goals.
There isn’t a “right” or “wrong” answer to the investment style question, but we do ask that you remain open to the possibilities. If you are unsure about how a property will fit with your current or long-term goals, it might be worth exploring the potential for upside.
Full-Service Hotel
If you have a background in F&B (Food & Beverage), have a Chef in your pocket, or just want to offer your guests an inclusive hotel experience, a hotel with a restaurant may be a good choice. Hotels with F&B allow for additional revenue streams, such as event catering, live music, alcohol, and liquor income.
Don’t want to run a restaurant? One option is to lease out the restaurant space. A hotel with a leased restaurant will benefit from F&B (an attractive guest amenity) while acting as a landlord instead of a restauranteur.
- Read More: Full-Service Hotel
Select-Service Hotel
Select-Service hotels may be independent or franchised but in terms of F&B (Food & Beverage), they may be the most common style of hotel. These hotels offer buffet-style breakfast or continental breakfast. Existing hotel staff can set up and oversee this style of food service for a set time each morning with ease, and little to no special equipment.
- Read More: Select-Service Hotel
Limited-Service Hotel
Usually reserved for the Economy class of hotels/motels, Limited-Service hotels often only offer coffee (in-room/lobby) and a light welcome pastry. With limited or no F&B (Food & Beverage), hotel owners can keep costs to a bare minimum. These savings can then be passed along to guests. The Limited-Service option is great for hotels that happen to be restaurant-adjacent, budget-friendly, or smaller.
- Read More: Limited-Service Hotel
Franchised Hotel
Franchised hotels now offer a wide range of hotel styles, chain scales, and customer focus, with the added advantage of a clear game plan on how to proceed. Whether you want to reposition an independent hotel, purchase an existing brand, or start from scratch, a franchise hotel option offers economies of scale and a built-in team to support you along the way.
- Read More: Franchised Hotels
Independent Hotels
An independent hotel owner likes the freedom of making decisions for their own brand without oversight from a larger corporation. Independent hotels are updated, renovated, and styled according to their own schedule and the desires of the hotel owners alone. For seasoned hoteliers or highly motivated newcomers, an independent hotel can offer freedom and a sense of entrepreneurship. While some independent hotels may be a boutique/lifestyle hotel, but it is also very possible to be more akin to a franchise hotel in style, without the branding.
- Read More: Independent Hotels
Boutique Hotels / Lifestyle Hotels
While there is some debate about the size of a boutique hotel versus a lifestyle hotel, the important thing to remember is that these hotels cater to customers who want a unique hotel experience. This investment style is ideal for someone who wants to offer a unique, upscale, or luxury experience, with a strong focus on immersive guest experience and decor.
- Read More: Boutique Hotels or Lifestyle Hotels
Bed & Breakfast (B&B)
While CIP doesn’t broker B&Bs, this investment style overlaps with boutique hotels (with fewer keys), inns, independent hotels, glamping/camping sites, and lodges. Consider reading more about this investment style if you like a more hands-on approach, a smaller property, or are looking for a property that offers an opportunity to live on-site and mingle more with guests.
- Read More: Bed & Breakfast (B&B)
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