Playbook #072: Hotels / Motels

🖼️ The Big Picture

Hotels / Motels can be a highly lucrative and relatively passive business for the right owner who’s able to install great systems and a strong team. There are several business models to choose from, and it’s critical to pick the right one for you.

As we all know, the travel industry was hit extremely hard by the pandemic. Hotels and motels put up record low numbers, and despite some government relief, many owners wound up waving the “white flag” and selling. Unfortunately, the sector was down about 500,000 jobs and $59 billion in business travel revenue in 2021 compared to 2019.

The industry has recovered in 2022 thanks to the “revenge travel” trend… just in time for the recession to kick in. Most revenue comes from people’s discretionary income - which usually means cutting back on travel, so the hospitality industry is more susceptible to economic downturns than other sectors.

All of this together means that savvy buyers who know how to handle risk and run a tight ship will have a lot of opportunity to pick up hotels and motels at significant discounts in the near term.

Fortunes are made during recessions, and this is one opportunity where the right person, whose Investor DNA aligns, could create legacy-building wealth with a couple of smart moves.

🔢 By The Numbers

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