It’s a Suite Life! 11 Reasons Why Hotel Rooms Should Be Your Next Investment (2024)

FAQs

It’s a Suite Life! 11 Reasons Why Hotel Rooms Should Be Your Next Investment? ›

With potential for high returns and passive income, it's an option worth considering for a diversified investment portfolio. "For those seeking attractive returns, but low risk in their investment portfolio, hotel room investment is a path worth exploring," concludes Reed.

With potential for high returns and passive income, it's an option worth considering for a diversified investment portfolio. "For those seeking attractive returns, but low risk in their investment portfolio, hotel room investment is a path worth exploring," concludes Reed.

The benefits of staying in a suite

It is usually a much larger expansive space with a host of amenities and luxurious additions. Instead of just a place to crash, a suite is a comfortable living space that usually involves multiple rooms designated for different functions.

The comfortable and quiet surroundings, along with the high-quality bedding and linens, provide the perfect environment for a good night's rest. Furthermore, many hotels offer black-out curtains, soundproof rooms, and other features designed to promote a more peaceful sleep experience.

For a room to be in the suite category, it must consist of two or more interconnected rooms. In addition, as in standard rooms, the toilet and bathroom are also located in the suite. In other words, a suite room is like an apartment where you can meet all your needs.

The hospitality industry is thriving and expected to grow to US$ 5.8 trillion in 2027 at a compound annual growth rate (CAGR) of 5.5 percent. As the number of travelers, leisure or business, shows no sign of slowing, it could be said that there's never been a better time to see that hotels are a good investment.

Suites usually offer multiple separated spaces: Bathroom, kitchen, bedroom, living area, and sometimes many more. Most suites offer apartment-style living and tend to feel much more like staying in a condo or apartment than a hotel room.

The privacy factor sets suites apart, making them an ideal choice for couples, families, or those seeking a more secluded environment. With separate bedrooms and living areas, guests can enjoy a level of solitude that might be challenging to achieve in a standard hotel room.

The most luxurious accommodation in a hotel is often called the presidential suite or royal suite.

What is the most important thing for a hotel? ›

Hotel receptionist

This is arguably one of the most important hotel positions. As the face of the hotel, the receptionist is the first and last person guests interact with. Duties include greeting guests, making bookings, taking phone requests and managing complaints.

The size of luxury suites in hotels can vary significantly — anywhere between 430 and 4000 square feet (roughly 40 – 372 square metres). In order to qualify as a hotel luxury suite (and not just a deluxe room), it must have at least two separate rooms.

A master suite has all the features of a master bedroom and more. Architects also refer to this room as “owner's suite”. A master suite is a large bedroom with a private en suite bathroom, which can be directly accessed from the bedroom.

Suites or Executive Suites

If a room is described as a suite or an executive suite, then it will usually be a larger space as compared to a standard room. It will probably have a separate bedroom area that is connected to a modestly-sized living room.

Investing in hotel rooms presents a unique opportunity within the real estate sector. With the potential for passive income, lower entry costs, and attractive returns, it can be an appealing option for investors looking to diversify their portfolios.

Benefits of Investing in Hotel Rooms

The passive income generated by investing in hotel rooms is high. Hotel management handles operations, providing regular rental revenue. This investment can offer long-term financial stability. Diversifying your portfolio with hotel rooms reduces risk.

Experts in the field, however, often state that full service hotels see yearly returns of 10–14% and low service hotels between 8–12%. One important factor is occupancy rates. Higher occupancy results in increased room revenue and profits.

Room Revenue: The primary source of revenue for any hotel is room revenue, generated through the “sale” of guest rooms. Select-service hotels typically offer room rates at a more affordable price point compared to full-service hotels, making occupancy a critical factor in revenue generation.