How to choose and buy 1st hotel ?

Question

1.  Sources.    Loopnet lists some hotels for sale..   so finding a great hotel broker and buying off market is the best way to go?    Now is a good time to buy?   Maybe some distressed hotels.

2. Location.   Prefer warm places..  so that hotels can operate all year around..    unless around ski resorts.

3.  Management.  Will hire a management and learn to manage by self.

4.  Acquisition process and due diligence.   SBA loans works?   What to note about the inspection checklist?

5. Post buying period.    Will try to sell in a few years after successfully operate it.

Ronald Rohde · Answer

Off market takes more time and relationship credibility, you'll have to negotiate with tougher, less motivated sellers.

Warm is only for vacation travelers, plenty of busy locations have travelers year round

Okay

You should ask your lawyer and or broker

Yes having an exit plan with valuation goals or refinancing schedules is prudent.

Anthony Wienke · Answer

Not trying to hijack your post but I had my own questions regarding hotel/motel investments.

Specifically, how passive a hospitality investment business such as these really are. I know there are dozens of companies that specialize in maintaining and operating these properties but how passive are they really?

Is it a good idea to have your own name brand hotel or would a franchise like motel 8 be better in terms of support and marketing for the passive investor\owner?

My questions are pretty simple but wanted to hear from experienced Hotel/motel owners what they think.