Home » Alan Naul » Why invest in the hospitality sector?

Why invest in the hospitality sector?

The hospitality and hotel sectors are one of the biggest and fastest-growing industries in the world. Given the surge in global tourism and global investment, and with revenues and profits steadily rising over the past decade, it is the perfect time to invest in the hospitality industry.

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Image source: datatrend.com

The hospitality sector is comprised of a combination of fields in the service and tourism industry, including lodging and hotels, event-planning, restaurants, and theme parks. Assuming that the investor is aware of the largest and most reputable establishments in the industry, the sector ensures a low-risk investment that promises high income and sometimes even hands-free participation. The technology infrastructure in hotels, for example, has greatly become more automated, lessening the need for revenue and reservation managers.

Hotel rooms are particularly good investments because while being a commercial property investment, the investment doubles as part residential property. Global funds and investment companies are focusing on hotels, and private investors might want to follow suit.

This works because a room (or rooms) is considered part of the hotel, and managed and serviced as such. Depending on the arrangement, the investor gets a share of the whole hotel property’s income or takes a percentage from the room. Throw in there any upgrades in in-room renovations that would, of course, be shouldered by the hotel itself. In short, you’re guaranteed that your investment is future-proof, technology-wise.

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Image source: piersonwireless.com

Alan Naul is the founder of Javelin Group, LLC, which specializes in strategic investments in commercial real estate for senior living and hospitality sectors. He has been involved in multiple hotel investments and repositioning programs and has led strategic investments in mixed-use healthcare districts and lifestyle-oriented neighborhoods. Learn more about Alan and the Javelin Group by visiting this <ahref=”http://www.javgrp.com/”>website.

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