Hotel Investment Worth It?

[Dana Devlin]

Looking to purchase my first short term rental and came across this flyer. Has anyone had experience with investing in a hotel unit? Is it worth it? Link to flyer: https://connectedinvestors.com...

[Diya L.]

Quote from @Account Closed:

In a hotel you can imagine you're leasing to tenants with a 1-3 night lease.

That opens the potential for a LOT of vacancy if you aren't in the right place at the right time. 

Business is also extremely seasonal.

I'd opt for multifamily if you want many units.

But if I can operate as STR and I can get 3-4x as much revenue vs LTR at a 50-60% occupancy, what's the harm in leaving the units vacant at times? I teach my students that higher occupancy doesn't mean better since a 90% occupied STR may generate just as much revenue as a 70% occupied STR (with higher ADR) except the wear and tear will be greater...