Three Tips on Basic Hotel Investment
Considering investing in the hospitality industry? Hotel investment is a good method to diversify your portfolio, building wealth in an industry that is expanding. The industry is run by established names, so you have a nice hands off investment you never need to worry much about. Here, we look at three tips you can use to get your bearings in the world of hospitality investment.
Start With Brands
The big brands in the industry are established, and a good place to start to at least learn the basics if not to invest. Any good portfolio contains a few well-known brands in it, especially those with a five-star rating. Some will have massive international marketing campaigns behind them to advertise their services, while others rely on strong relationships and word of mouth marketing for repeat business and a loyal customer base. Either way, brands are a good way to acquaint yourself with the market.
Amenities are Everything
Think about what you like when you travel. You want relaxation, and some on-site amenities worth taking advantage of. Things like a spa, a golf course or an exhibition center are just a few of the amenities good investors look for. Conference rooms offer excellent returns, especially if the chain attracts big names and annual events.
Luxury or Not?
The final tip is more of a suggestion, and that’s to aim higher. If you consider the normal hotel market, vacation rentals are slowly cutting into market share and the hotel industry is benefitting greatly from luxury rentals. Finding a good luxury brand, and making the right investment in your portfolio, will yield an impressive return.
Bio: Omar Amanat is an investor and philanthropist based out of the United States. Omar Amanat was part owner of Aman Resorts Group, and a prominent investor in the hospitality and luxury travel industries.