Are STR investors looking for boutique hotels now? Economies of scale?

[Elaine Kim]

I have a 14-unit multifamily for sale that can legally be run as an STR, and six of the units are online as STRs. Since this scenario is not very common, I think of it like a boutique hotel, even though it is not.

I heard that investors who are making the switch are more attracted to 12% cap rates, fix and flip. Is that truly the case? 

What are the common criteria being used?
Ty