Skip to content
  • (800) 580-3950
  • Request a Consultation
Top Menu
Perry GroupPerry Group
Perry Group
Hotel & Restaurant Experts For The Hospitality Industry
  • Home
  • About
    • Bios
    • Contact
  • Services
    • Hospitality Management
    • Hotel Restaurant Nightclub Consulting
    • Hospitality Dispute Solutions
  • Clients
  • Media
    • Articles
    • Presentations
    • Press
  • Investors
  • Blog
 
  • Home
  • About
    • Bios
    • Contact
  • Services
    • Hospitality Management
    • Hotel Restaurant Nightclub Consulting
    • Hospitality Dispute Solutions
  • Clients
  • Media
    • Articles
    • Presentations
    • Press
  • Investors
  • Blog

Should You Add Hotels to Your Investment Portfolio?

January 10, 2017Experts in Hotels and Restaurants BlogBy PGAuthor
interim hospitality management

Many investors think that hotels are out of their league. But, if you feel the same way, take note that this isn’t really the case! With some assistance from interim hotel management and hotel consultants you can rest assured in your new investment. Plus, putting money in hotels is something that every investor should consider since it helps them enjoy several benefits.

 

The Benefits of Investing in Hotels

One of the biggest advantages of hotel investment is that it helps you diversify your portfolio and reduce the risks that come from putting all your eggs in one basket. This is particularly true if your portfolio is currently composed of mostly stocks and bonds. Another benefit is that it has a high ROI, meaning it can provide you with above-average dividends and give you your money’s worth.

Investing in hotels also lets you ride the growth of the hospitality industry. Despite the presence of Airbnb and other home sharing programs, hotel revenues are still expected to grow in the coming years, especially those coming from business travelers and tourists looking for a luxurious experience. By adding hotels to your portfolio, you’ll get to take your slice of this growth and enjoy substantial return on investment.

 

The Challenges You’ll Face

Before you invest in hotels, though, you must be aware of the issues you’ll come across and know how to deal with them. One of the biggest challenges is the fact that hotel investments require huge capital, particularly if you’d opt for direct investments and purchase properties of your own. If you don’t like taking big risks, or if you don’t have access to enough funds in the first place, the large outlay can discourage you.

Another challenge is the amount of knowledge and experience needed to make the right investments. Thorough analysis is needed to ensure you choose the right hotels to buy or invest in; without this, you’ll most likely end up making the wrong decisions and wasting your money. If you plan to become actively involved in managing your hotel, you’ll need to develop your leadership and management skills. On top of that, having a sound knowledge and understanding of the hospitality industry. You could also look into interim hotel management as a short-term solution while you learn or hire someone else.

 

Hotel Investment Options to Choose From

The easiest way to add hotels to your portfolio is to invest in real estate mutual funds and/or real estate investment trusts (REIT). They’re considerably less expensive than purchasing a property, making them accessible even to investors with limited funds. They also come with less hassle and take less time. It’s important to note that they’re more volatile since they’re correlated to the stock market, like other stocks and shares.

The traditional way of investing in hotels is to buy one of your own (or become part-owner of one). This is more capital-intensive and requires you to pay more up front. It also requires active involvement in the business, so you’ll need to allot time and effort to it. You need to be knowledgeable, not just about business management, but also about the hospitality industry.

 

Fortunately, you can always get the help of Perry Group International. We’re a team of hospitality management consultants who can help you choose the right property to buy. We can also provide you with interim hotel management services during your first few months as a new hotel owner. Call now to learn more about the solutions offered.

 

 

Contact us Today at: (800) 580-3950; Continue Viewing Our Website

 hotel consulting interim hotel managementhotel investment advisor
Share this post
FacebookTwitterGoogle+PinterestLinkedIn
About the author

PGAuthor

Related posts
nightclub security expert
Tips from a Nightclub Security Expert on Bar Patron Safety
December 15, 2019
interim hotel manager
When You Should Use an Interim Hotel Manager
November 15, 2019
hotel interim manager
Why a Hotel Interim Manager Does Not Always Make Sense
October 15, 2019
hotel security expert
Hotel Security Expert Tips to Manage Security for Female Travelers
September 15, 2019
restaurant turnaround consultant
Choosing a Court-Appointed Receiver or Restaurant Turnaround Consultant
August 15, 2019
shutterstock_785814277
Case Studies in Using a Restaurant Receiver for Resolving Disputes
July 15, 2019
Recent News
  • nightclub security expert
    Tips from a Nightclub Security Expert on Bar Patron Safety
    December 15, 2019
  • interim hotel manager
    When You Should Use an Interim Hotel Manager
    November 15, 2019
  • hotel interim manager
    Why a Hotel Interim Manager Does Not Always Make Sense
    October 15, 2019
  • hotel security expert
    Hotel Security Expert Tips to Manage Security for Female Travelers
    September 15, 2019
  • restaurant turnaround consultant
    Choosing a Court-Appointed Receiver or Restaurant Turnaround Consultant
    August 15, 2019
  • shutterstock_785814277
    Case Studies in Using a Restaurant Receiver for Resolving Disputes
    July 15, 2019
Archives
About Us
Perry Group International is a consortium of hospitality management services and seasoned hospitality consultants with significant operations, marketing and financial experience. Our clients include both nationwide and international assignments.
Recent News
  • Tips from a Nightclub Security Expert on Bar Patron Safety
    December 15, 2019
  • When You Should Use an Interim Hotel Manager
    November 15, 2019
Press
With Industry in "Free Fall," How do Restaurants Survive the Winter?
Perry Group Forms Alliance to Provide One-Stop-Shop for Hotel Receiverships
Food&Wine - Restaurant Burglaries Are on the Rise Despite an Overall Drop in Crime
Restaurant Business - On Top of Everything, Restaurants Are Becoming Burglary Targets
San Francisco Business Times - Dine-In Restaurants Pivot Amid Pandemic to Takeout, Delivery - Even Retail
Indiana Minority Business Magazine - Keeping a locally owned restaurant alive — and thriving
Small Business Trends - The A-Z of Writing a Restaurant Business Plan
Today's Hotelier - Connecting with Young and Old
Follow Me
Tweets by HotelRestExpert
Follow Us

Request a Consultation

(800) 580-3950

dpg@perrygroup.com

San Francisco

201 Mission Street, Suite 1200
San Francisco, CA 94105
(415) 434-0135

Los Angeles

445 S. Figueroa Street, Suite 3100
Los Angeles, CA 90071
(213) 266-7691

San Diego

3111 Camino Del Rio North, Suite 400
San Diego, CA 92108
(619) 296-4278

© 2021 All rights reserved. Design by G4 Design House.
Disclaimer