Know the Community Before You Buy a Hotel

It’s one thing to decide to buy a hotel. It’s another thing entirely to choose a location. If you’ve made the decision to invest in a hotel property, you’ll need to do some research before determining which location to pursue. Whether you’re considering a suburban hotel in Kansas or a property in a heavily-populated urban center, Southeast International Hotel Brokers can help you determine which location is best suited for your financial goals.

Choosing a Location

Choosing a location is one of the most difficult parts of buying a hotel. It’s easy to pinpoint frequently traveled destinations, but that does not necessarily guarantee your personal success there. Consider asking yourself the following questions about a property’s surrounding community before you buy a hotel.

How Do the Surrounding Hotel Properties Compare?

One of the best ways to assess the profitability of a hotel property is to look at the surrounding competition. Most hotels are located on the edge of highways, in the center of busy urban centers, or near some type of public attraction or tourist destination. Chances are, the hotel property you’re interested in has a lot of competition nearby. Even if there are only a few other hotel properties, do some digging and get some answers. What do their profits look like? How much do they charge for a room? What types of amenities are they offering? What do their properties look like? Whether you work with a hotel brokerage or you do some investigating on your own, it’s vital that you take the time to assess the competition in a given area if you want to buy a hotel there.

Are There Any Attractions or Popular Destinations Nearby That Will Draw Customers?

It’s important to remember that convenience is one of the main factors that determines when and where a person will stay overnight. For example, if you’re traveling to watch the Cubs play at Wrigley Field, you’ll most likely want a hotel within walking distance of the baseball park. Similarly, if you’re heading to Denver for Christmas, and you need a place to rest for the night, you’ll most likely choose a hotel or motel along your route. Before you buy a hotel, you should think about the type of clientele you want to attract and choose a location accordingly. If you want to attract traveling business professionals to your hotel, you probably shouldn’t buy a hotel along the interstate. Instead, look at properties within close proximity to professional centers in the city near large conference centers and corporation headquarters. Additionally, hotel properties near popular attractions such as theme parks and historical locations will most likely attract families and large groups of tourists.

What Types of Business Partnerships Exist Here?

If you choose to buy a hotel in a certain location, it would be wise to research potential business partnerships within the same location. Oftentimes, hotel owners can partner with local organizations and businesses to form a mutually beneficial relationship that will increase bookings, enhance branding, and attract new customers. If you’re interested in pursuing local business partnerships and a location doesn’t offer much, you may want to continue your search for a hotel property elsewhere.

Buy a Hotel with Southeast International

Buying a hotel can be a complicated process, especially when it comes down to choosing a location. Let the experienced hotel brokers at Southeast International help you track down a profitable property in a location that you love. We have helped countless investors buy hotels and motels all over the Midwest and we’re happy to help you do the same.
If you’re ready to buy a hotel, contact Southeast International Hotel Brokers today to find out how we can help you.