2. When it comes to investing in accommodation
properties, there are as many investment
options as there are property types. Knowing
about the different types of accommodation
properties enables investors to create a self-
sustaining business that will provide profits for
years to come. Knowing the basic history and
some of the benefits and drawbacks of each
property type will also help investors make an
informed decision when buying.
3. Motels
Motels became a very popular
investment in the 1960s as the
development of the highway
system made long-distance travel
more common and accessible to the general public.
The intention of motels was to cater to the traveling
public but that began to change with advancements
in mass transportation. Many savvy investors
converted former motels into apartments for
monthly or long-term rentals, while others
purchased run-down and even abandoned
properties for their future development potential.
4. Non-franchised motels have made a strong
comeback in some states as fully restored
historical attractions or vintage operations. One
of the earliest motel chains was established in
the 1930s.
5. Hotels
In contrast to motels, which
were designed to cater to the
traveling public heading from one
place to another, hotels cater to a
broader spectrum. Furthermore,
hotels tend to operate as franchises or chains.
Buying into a hotel chain comes with the advantage
of brand recognition, which is reflected in the
purchase price. Be sure to read the franchise
agreement carefully and fully understand your legal
obligations to the brand.
6. Conference Centers
Conference centers are a type of
hotel designed to accommodate
very large groups. Conference
centers are a type of hotel
designed to accommodate very large
groups with a presentation area, sleeping
accommodations, dining opportunities, recreation and
even shopping amenities. The sheer volume of guests
who attend various conferences requires careful
management to balance the expense of staffing with the
potential for profit.
7. Extended-stay Hotels
Extended-stay hotels are
designed to accommodate
guests who require longer-
term lodging. The benefit
of investing in an extended-
stay hotel is that daily room cleaning and
laundering service is not required. Owners offer
a reduced rate based on the length of stay in
exchange for a regular laundering service
determined by the property owner.
8. Bed-and-Breakfasts
Bed-and-breakfasts require a
lot more than financial
backing. You are also investing
in a lifestyle. Guests expect a
more intimate and personable experience.
Washroom facilities are often shared, and guests
typically dine at the “family” table with the owners,
exchanging stories and experiences. Some bed-
and-breakfasts have successfully created a niche
market by tapping into the romanticism of a bygone
era and offer honeymoon and anniversary themes.
