If you want to pick a great hotel brokerage to work with you, consider investing in Southeast International Hotel Brokers.

When you make the decision to buy a hotel, you might start to dream up a style and location. It’s only natural, right? The only potential issue is that, while location is important, it’s not always important in the ways we consider it to be.

Dispelling the Location Myths

The first thought process that most tend to explore is that a busy, tourist-dense area will attract more people and yield a higher profit and return on investment. The truth of the matter is that a carefully thought out hotel in a rural location can yield just as much or even more than a hotel right smack in the middle of Touristville. It all depends on the variables of the location that affect profitability.

Naturally, more traffic flow will lead to more people in the market for lodging, but if you buy a hotel that is in the middle of Times Square or the Las Vegas Strip, you’re going to have stiff competition that could greatly affect your business.

In the same way, some are quick to assume that a rural hotel will pull less traffic and will struggle to maintain profit margins. The truth is that a rural hotel along a well-traveled highway with amenities nearby (i.e. a lake, beach, or an airport) has much less competition and is often the one with highest occupancy rates. Additionally, a more rural area will most likely mean lower start-up costs and fewer permitting hassles.

Growing Investment

A great way to up the return on a long-term investment would be to check hotel listings and try to buy a hotel in an up-and-coming area. This is where a hotel brokerage could provide a lot of insight. Hotel brokers are experts in the hospitality field and also in the current market, meaning they will likely know which areas have plans for development in upcoming years. Whether there’s a new theme park going in, an old downtown area getting a facelift, or a city being reinvented, the ability to predict traffic increases would likely enable you to buy at a lower cost and let your investment grow with the area.

Metro Madness

There are many who just have the itch to buy a hotel in the city. Although it can be more challenging, city life can provide an energy and excitement that is incomparable.

A hotel brokerage will be able to guide you and let you know the steps to take to go through the permit processes and do things in a way that won’t lead to a headache down the road. Your hotel broker will also likely have insight into the neighborhoods that are thriving, the ones that may present other challenges, and the ones that are in line for development.

A Hotel Brokerage Knows Best

The perks of having the backing of a hotel brokerage are extremely valuable. Having seasoned experts to fill you in on the practical steps, the bigger picture, and potential risks and issues along the way enables you to move forward with confidence that you are making informed decisions.

When making an investment as large as a hotel, it’s important that all of your bases are covered. Growing a business is a lot of work, but going in with the right knowledge and expectations is key. A hotel brokerage will help you sift through hotel listings and weigh options to find something that can help your business thrive, factoring in the way that the location will affect your clientele, margins, and profitability. At Southeast International, we take great care to be the hotel brokerage that will aid you in making good investments to live your dream.