Lodging and hospitality is a business that involves providing real estate and an array of services to business and leisure travelers. That’s pretty straight forward.
As real estate investors, any time there’s real estate and cash flow, we’re interested. And when you do the math on nightly rentals, you can see there’s some real opportunity in the hospitality sector. But it’s a very different game than just renting out single family homes.
Like any business sector, there are trade groups, conferences, industry publications and gurus who cater to hotel investors, owners and operators. One of our favorite resources is Lodging and Hospitality magazine and their annual Lifestyle Boutique Hotel Development Conference.
So as we’re making our plans to head to Miami Beach (like we really needed an excuse for THAT), we thought it would be fun to dedicate an episode to talking about what’s happening in hospitality.
Checking in and enjoying the lifestyle of reality radio for this episode of The Real Estate Guys™:
- Your 5 star host, Robert Helms
- The no-tell co-host, Russell Gray
- Special guest, Managing Editor for Lodging Hospitality magazine, Eric Stoessel
One of the many things we love about real estate is there are LOTS of ways to make money. One of the sexier ways is hospitality. Hotels, bed and breakfast inns, and resorts are among a few of the property types in this sector. And while there are certainly crappy properties, the odds are you’d probably rather spend the night in your hotel than your Section 8 rental, right?
What’s really interesting about lodging and hospitality is the premium guests pay for short term rental use (nightly or weekly versus month to month). So even after you factor in all the expenses, the numbers can be pretty enticing.
Just as exciting are all of the ancillary income opportunities. Not only can you make money renting the room, but you can earn additional profits with conference space, restaurants, spas, vending, referral fees to local merchants and attractions, internet, pay-per-view TV, dry cleaning – and the list goes on and on and on.
Of course, turning rooms over nightly and providing all kinds of additional services requires a lot more work. Then again, you can sub-contact all the work and simply take a piece of the action. Last time we looked, a little bit of something with no work can be very attractive. And with a diverse income stream, you have many options to increase profitability and adjust to economic cycles.
But before you run off and trade all your little green houses in for a big red hotel, it’s a good idea to know a little bit about the business. If you’ve ever watched an episode of Hotel Impossible with Anthony Melchiorri, you know the hotel business can devour an amateur.
The good news is that there are resources and experts available to help you learn the business, whether you intend to operate a boutique hotel or simply invest in a property and rent it out to an operator. So if you’re curious about the opportunities in the lodging and hospitality business, listen in on our conversation with Eric Stoessel. This is a sector he’s been focused on for quite some time.
Even if you don’t think you’d ever want to own a hotel property, you’d still be well advised to monitor the hospitality sector. The health and direction of hospitality can often be an indicator of the general health and direction of the economy. And in case you’re wondering how the hotel business is doing in this economy, Eric tells us that leisure travel is UP.
So if you’re REALLY interested in this sector, you’ll want to join us in Miami Beach when we attend the Lifestyle Boutique Hotel Development Conference. All of the industry leaders will be there. In just a couple of days, you’ll gather up all kinds of resources, contacts and information about lodging and hospitality. So when your portfolio is ready for that big red hotel, you’ll be prepared for success.
Did we mention that Hotel Impossible star Anthony Melchiorri will be the keynote speaker? Come check him out!
Meanwhile, enjoy our interview with Eric Stoessel. Hope to see you in Miami Beach!
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