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"if you don't find a way to make money while you sleep you will work until you die"

- warren buffet

reasons to invest in hotels

Here are just a few reasons as to why Hotels are great investments. Feel free to contact us for any questions you may have.

reason #1

Higher yield on your capital from the higher cashflow

A hotel is a combination of real estate and a business. Since hotels charge by the day it can vary its room rate based on demand and supply. The combination of the two result in higher revenue per square foot compared with other income properties.

reason #2

global customer base & franchised business model

A franchised hotel like Marriott, Hilton, Holiday Inn, etc . has an established GLOBAL customer base. Moreover, it has systematized operations and marketing support. The combination of the two results in predictable revenue and predictable profit.

reason #3

professionally managed institutional grade asset

Due to its higher revenue, hotels can afford truly professional hotel management and staff. Moreover, there's on-going PIP (Property Improvement Plan) required by the franchise which means, the hotel is kept in great condition or institutional grade quality.

our strategy with buying hotels

Our strategy when it comes to buying hotels is simple, yet effective. Take a look below to see what we keep in mind when purchasing new hotels.

the right flag

We choose branded hotels. We like Marriott, Hilton and Hyatt. These brands have a loyal global customer base, great marketing support and best-in-class operational systems. This lowers our operational risk.

below rebuild cost

We usually do not build from the ground up. Rather, we buy existing hotels and we consider its competitiveness vs. new builds. This ensures we can charge daily room rates that is profitable to us and affordable.

demand drivers

Is the hotel near offices, theme parks, big churches, sports stadiums, universities and tourist attractions? By choosing the right location with enough demand drivers, we lower our vacancy risk.

value-add

We only choose hotel projects where can create substantial increase in value through improved operations, & investing in a comprehensive PIP (Property Improvement Plan). This increases the value of our properties significantly lowering our disposition risk.

discount to value

We underwrite hotels conservatively and only acquires properties we can buy at substantially below market value. This gives us a good margin of safety to factor in cap rate decompressions or adverse economic corrections like a recession.

across the u.s.

We can buy hotels all over the country given our scale of operations. Our hotel operator partner company has over $1.5 BILLION of hotels with 1700 employees. We can also renovate properties cheaper than other operators given our vertical integration.
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we are the right fit!

Hotels provide higher, more predictable and lower risk returns on your investment.

On top of reasons above, owning a hotel gives you the advantage of possibly reducing your tax burden. A few reasons for this are depreciation, equity growth, and tax-deferred exchange in business real estate.

Are you Interested or have additional questions? Contact Rolling Prairie Group today to get started in investing in hotels.

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