Hotels as an investment: potential returns and entrepreneurial risk
The hotel asset class includes hotels in all categories, from budget hotels to luxury hotels. Hotel investments can be interesting for both institutional investors and private investors. In booming tourism regions, hotel investments can achieve high returns.
Benefits of Hotel Investments:
Diversification:
Hotels can help diversify an investor's portfolio and reduce risk.
Investment in tangible assets:
Hotels represent an investment in tangible assets and are therefore less susceptible to price fluctuations on the stock markets.
Inflation protection:
Room prices can be adjusted to inflation, which protects the value of the investment over time.
Tangible Asset:
Hotels are physical assets that can be seen and touched.