How To Invest In Hotels

How To Invest In Hotels

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This post may contain affiliate links. For more info read my disclosure.

Investing in hotels can be a lucrative opportunity for those who have a keen eye for business and are willing to do their research.

Whether you are interested in investing in a single hotel property or in a hotel chain, there are a few key factors to consider before making any investment decisions.

In this blog, we will outline some of the most important steps to take when investing in hotels.

There are quite a few steps you need to be aware of before you start your investment.

1. Conduct Market Research

Before investing in a hotel, it is crucial to do your due diligence and research the market thoroughly. You should analyze the current as well as the future demand for hotel rooms in the area where you plan to invest.

This will help you determine the potential occupancy rates and the expected revenue.


Investing in a hotel is pricy! Have you thought of a side hustle to combat the expenses? Survey Junkie is an amazing resource to help you make some extra money so you can invest more into your financial goals. Check out Survey Junkie here!

2. Choose the Right Location

The location of your hotel is critical to its success. You want to invest in a location that has a high demand for hotel rooms and is easily accessible to tourists and business travelers.

​You will also want to consider the proximity to major attractions, airports, and public transportation. If you’re not in a heavily trafficked location, you’re not going to get a good return on your investment.

3. Determine the Type of Hotel

There are various types of hotels, from luxury to budget-friendly. Each type of hotel caters to a specific market segment. You should choose the type of hotel that aligns with your investment goals and the needs of the market.

​​For example, if you are investing in a tourist destination, a resort-style hotel might be more appropriate than a business hotel.


If you find yourself traveling and staying at hotels a lot, I recommend that use Marriot Bonvoy. They have so many great hotels I use on my own travels.

​You can sign up for rewards and use the points you get to get completely free stays at hotels as well! Check out Marriot Bonvoy here.

4. Consider Financing Options

Investing in hotels can be expensive and you may need financing to make your investment. You can look into financing options such as traditional bank loans or crowdfunding. Also depending on your finances, you can decide to invest as a general partner or limited partner.

If you need a budget to help you figure out your finances and plan out your financing options, you can check out some of the free resources on my resource page. You can even consider using your tax refund towards a great investment like this!

It can be difficult to get financing or a loan without a good credit score. Luckily, if your credit score isn’t where you want it now, there are great resources to help you get it to where you dream of it being!

​Check out It’s My Money’s Credit Report tool to help you get your credit back on track. You can use this to view your credit report and dispute any issues you see. You can get your credit where you want it. Check it out here!


According to Dr. Amina Gilyard James on The Money Exchange Podcast, venturing into hotel investment as a limited partner in the initial stages enabled her to learn the investment environment and scout what was necessary to ensure her investment was successful.

​When she was then confident to invest she then moved to general partner.

5. Hire Experienced Professionals

To ensure the success of your investment, hire experienced professionals such as a hotel management company, a real estate professional/company, and an accountant.

​These professionals can help you manage the property, navigate legal issues, and handle the finances.
If you’re interested, you can even fly out and visit the hotel you’re investing into. This is a great way to see how it’s working first hand. If you do fly, I recommend flying on United. They have great deals on travel and I use them myself. You can even earn miles towards free flights. Check United out here.
6. Financial Performance

Before investing in a hotel, review its financial performance to ensure it is profitable and has the potential for growth. Examine the hotel’s revenue, operating expenses, debt, and occupancy rates. Determine if the hotel is well-managed and if there is room for improvement in operations and revenue generation.7. Monitor Your Investment

Once you have made an investment in a hotel, it is important to monitor its performance regularly. This means tracking occupancy rates, revenue, and expenses. Use this data to assess how lucrative your investment is and if it is unprofitable how you can work towards profit.


If you’re wanting a great way to manage the money you’re making from your investments (or other side hustles like Survey Junkie), you can use an amazing resource like Novo. Novo is a business banking site that is completely free to get started with.

You can use Novo to keep your business money separate from your other money so that way you can track your expenses and how your goals are coming along. Check out Novo here.

8. Hotel Management

Consider the hotel management team’s experience and expertise before investing. A strong management team can significantly impact the hotel’s performance and growth potential. Look for a team with a track record of success and experience in the local market.

Bonus Tip

Definitely don’t forget to check out Survey Junkie before you finish reading this! Who doesn’t love easy money. They are a great way for you to make some extra money at any time.

​You can use it a little bit before you go to bed, on your break at work, or any time you find yourself with a little down time. Why not use that time to reach your financial goals with a little bit of extra money! Check out Survey Junkie here.


Hotels are an excellent source of income for investors. Investors can have several options to increase their earnings in areas like refurbishment and operations because of their agility.

Are you looking to venture into hotel investment? Listen to Episode 117 of The Money Exchange to get acquainted with how to do it right.

If you enjoyed, leave a comment and share these great resources with others.

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