Property Futures

Real Estate News, Reviews and Investment

Property Types: Hotels

From boutique hotels with only three or four bedrooms to skyscrapers and large resorts welcoming thousands of guests, hotels come in all shapes and sizes and offer very different opportunities to visitors and investors alike.

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How to choose your hotel investment

A number of issues are common to all hotels, and all hotel owners will hope for:

  • Easy access – from local buses to international airports, transport is key
  • Local interest – whether it’s natural beauty or a conference center, something has to bring visitors to town
  • Staff – from breakfast to bedtime, guests require attentive and capable service
  • Publicity – you can’t stay at a hotel no one’s heard of

As a result, location is critical and savvy developers are always on the look out for situations with income generation or investment potential.

Types of hotels

Resort Hotels

With a wide range of facilities available on-site, these hotels ensure that their guests never need to leave the resort in order to enjoy their stay. Resort hotels are particularly common in areas of natural beauty such as beaches and mountains. Start-up costs are high as the development is usually extensive. Typical features include:

  • Sprawling resort complex which may include several hotels
  • Hundreds or thousands of rooms
  • Several eating areas or restaurants
  • A wide range of facilities such as swimming pool, bar and gym
  • Leisure activities such as golf, a theme park or ski slopes available on site or nearby
  • Cater to a wide range of guests from small children to retirees
  • Expect guests to stay for a week or more

City-centre Hotels

With land prices at a premium in downtown locations, city-centre hotels will often offer a limited range of facilities on-site but will have many sights and activities on their doorstep. Such a hotel might:

  • Focus on business travellers
  • Expect guests to eat out primarily
  • Expect guests to stay one or two nights
  • Offer small or limited leisure activities such gym, bar or restaurants
  • Have major attractions, leisure activities and restaurants within walking distance
  • Charge more than a similar hotel in a less interesting area

Boutique Hotels

From 17th century English coaching inns to glass houses in the desert, boutique hotels are at their best when they are deeply enmeshed in their surroundings. Often unique and run by the owner, they provide a sharp contrast to the chain hotels and motels. Visitors can expect:

  • Small number of rooms
  • Luxurious atmosphere
  • Personal service
  • Unique or quirky surroundings such as a working farm, historic building or cliff-top retreat
  • Limited leisure activities and services

Bed and Breakfast

Usually run out of a building built as a family home, B&Bs often only have a handful of rooms and are usually run by a couple or family who live on site. B&Bs vary widely in price and amenities – some are close to boutique hotels, while others are more like staying with a friend. They are also called guest houses and you may expect:

  • Shared or private bathrooms
  • Smaller rooms
  • Personal service – you will probably be served breakfast by the owners
  • No food other than breakfast will be provided – although some may do a picnic lunch on request
  • May be more willing to cater to children and pets or messy outdoor activities such as hiking
  • Limited breakfast options, no professional chef
  • No leisure facilities – unlikely to have a pool, gym or bar
  • May have limited check-in and check-out times


Sometimes called a youth hostel, these cater to the lowest budgets, and although common in large cities they also often appeal to outdoor enthusiasts and school groups, too. Rural hostels may focus on a particular sport or activity, welcoming the mess and fuss which comes with skiers, muddy mountain bikes or hikers. At their best, they provide a communal spirit and easy camaraderie. Guests can expect:

  • Shared rooms and dormitories
  • Little or no food provided on site
  • Self-catering in a shared kitchen
  • Shared washrooms and toilets

Budget hotels and motels

A step up from hostels, budget hotels offer private rooms, usually with an attached bathroom, at a lower price than other hotels in the same area. Typical features are:

  • Smaller rooms, lower quality furnishings
  • Limited facilities
  • Intended for a short stay
  • Often close to a motorway or airport
  • Often part of a chain
  • Standardized service – may struggle to cater to special requests or needs

Extended stay hotels

Often catering to business travellers and workers with high mobility, extended stay hotels may also have short-stay rooms. Extended-stay rooms may be standard hotel or motel rooms or may be more like apartments. These ‘apart hotels’ facilities may include:

  • Larger rooms, a suite or even a one- or two-bed apartment
  • Cooking facilities, from a hot plate to a full kitchen
  • Laundry facilities in the room or nearby
  • Separate living or dining areas
  • Cleaning service
  • Concierge service
  • Dedicated parking area
  • Separate entrance

Hotel rooms for sale

Some hotels have recently begun allowing investors to buy a room. Much like buying a timeshare apartment, the purchase allows the new owner a certain amount of access to the room (a number of nights stayed in the hotel) as well as a share in the profits made as the hotel rents the room out to other customers.


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This entry was posted on May 13, 2013 by in Property and tagged .

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