Hotels as an investment: Return opportunities and entrepreneurial risk
The asset class "hotel" encompasses hotels in all categories, from budget hotels to luxury hotels. Hotel investments can be attractive to both institutional and private investors. In booming tourist regions, hotel investments can generate high returns.
Advantages of hotel investments:
Diversification:
Hotels can contribute to the diversification of an investor's portfolio and reduce risk.
Tangible asset investment:
Hotels represent a tangible asset investment and are therefore less susceptible to price fluctuations on the stock markets.
Inflation protection:
Room prices can be adjusted to inflation, which safeguards the value of the investment over time.
Tangible Asset:
Hotels are physical assets that can be seen and touched.