The United States is a popular tourist destination, and there is a high demand for hotel and resort accommodations throughout the country. This demand is expected to continue to grow in the coming years, driven by factors such as population growth, rising disposable incomes, and increased international travel.
POTENTIAL FOR HIGH RETURNS
Hotel and resort real estate can generate high returns on investment through income and appreciation. In 2023, the average net operating income (NOI) for hotels in the United States is expected to be 38.5%, according to PricewaterhouseCoopers. In addition, hotel real estate has historically appreciated at a rate above inflation.
POTENTIAL FOR DIVERSIFICATION
Investing in hotel and resort real estate can help to diversify your investment portfolio. Hotel real estate is not correlated to the stock market or other asset classes, which can help to reduce your overall risk.
PASSIVE INVESTMENT OPPORTUNITIES
There are a number of ways to passively invest in hotel and resort real estate, such as through real estate investment trusts (REITs) and hotel syndication. This allows you to invest in hotel real estate without managing the property actively.
The resort hospitality industry is one of the few industries that tends to thrive even during economic downturns. People still need to get away and relax, even when they're tightening their belts. This makes resort hospitality assets a great way to diversify your investment portfolio and protect yourself from market volatility.
Resort hospitality assets can generate passive income through rental income, dividends, and capital appreciation. This means that you can earn money from your investment even while you're sleeping or doing other things.