Investing in Hotels: How Returns, Risks and the Market Work
How hotels earn money, why they behave differently from apartments or offices, what the 2025 market data shows, and the risks to check before buying one.
Topic
Articles about multifamily in real estate financing and investment.
29 articles · page 1 of 3
How hotels earn money, why they behave differently from apartments or offices, what the 2025 market data shows, and the risks to check before buying one.
What changes when the tokenized property is a hotel or an apartment building: operating income, managers, reserves, tax structure and real deals.
A checklist for buying and repositioning a run-down apartment building: due diligence, tenants in place, rent and eviction rules in Nova Scotia and California, and capex.
How the capital stack works for hotels and apartment buildings: senior debt, mezzanine, preferred and common equity, and what each costs in money and control.
How hotels and apartment buildings are marketed to buyers: listed versus off-market sales, the offering memorandum, the data room and qualifying buyers.
Why hotels and apartment buildings are financed differently, the main loan options for each in Canada and the U.S., and how to compare offers.
What a real estate joint venture is, who the partners usually are, how it compares with syndication or a sale, and when it suits a hotel or apartment project.
The joint venture terms that matter for a hotel or apartment deal: contributions, the waterfall and promote, control, deadlock, exit, risk and legal form.
Banks, credit unions, life insurers, CMBS, agency and private lenders compared on cost, leverage, speed and flexibility, and how to choose the right one.
The public programs that lower the cost of building apartments and hotels in Canada and the U.S., from CMHC loans and tax rebates to LIHTC and partnerships.
Which capital projects raise income and value at a hotel or apartment building, which only protect it, and how to test the return before you spend.
NOI, cap rate, DSCR, occupancy, ADR, RevPAR and GRM explained, with worked examples of how appraisers and lenders value hotels and apartment buildings.