What to Look for in an Accommodation Property

When it comes to investing in accommodationproperties, there are as many investmentoptions as there are property types. Knowingabout the different types of accommodationproperties enables investors to create a self-sustaining business that will provide profits foryears to come. Knowing the basic history andsome of the benefits and drawbacks of eachproperty type will also help investors make aninformed decision when buying.

Motels

Motels became a very popularinvestment in the 1960s as thedevelopment of the highwaysystem made long-distance travel

more common and accessible to the general public.The intention of motels was to cater to the travelingpublic but that began to change with advancementsin mass transportation. Many savvy investorsconverted former motels into apartments formonthly or long-term rentals, while otherspurchased run-down and even abandonedproperties for their future development potential.

Non-franchised motels have made a strongcomeback in some states as fully restoredhistorical attractions or vintage operations. Oneof the earliest motel chains was established inthe 1930s.

Hotels

In contrast to motels, whichwere designed to cater to thetraveling public heading from oneplace to another, hotels cater to abroader spectrum. Furthermore,

hotels tend to operate as franchises or chains.Buying into a hotel chain comes with the advantageof brand recognition, which is reflected in thepurchase price. Be sure to read the franchiseagreement carefully and fully understand your legalobligations to the brand.

Conference Centers

Conference centers are a type ofhotel designed to accommodatevery large groups. Conferencecenters are a type of hoteldesigned to accommodate very large

groups with a presentation area, sleepingaccommodations, dining opportunities, recreation andeven shopping amenities. The sheer volume of guestswho attend various conferences requires carefulmanagement to balance the expense of staffing with thepotential for profit.

Extended-stay Hotels

Extended-stay hotels are designed to accommodate guests who require longer-term lodging. The benefit of investing in an extended-stay hotel is that daily room cleaning and laundering service is not required. Owners offer a reduced rate based on the length of stay in exchange for a regular laundering service determined by the property owner.

Bed-and-Breakfasts

Bed-and-breakfasts require alot more than financialbacking. You are also investingin a lifestyle. Guests expect a

more intimate and personable experience.Washroom facilities are often shared, and gueststypically dine at the “family” table with the owners,exchanging stories and experiences. Some bed-and-breakfasts have successfully created a nichemarket by tapping into the romanticism of a bygoneera and offer honeymoon and anniversary themes.

Randy Bettwww.BetterGroupRealEstate.ca