Episode 74: Hotels & Motels - The Opportunity Most Investors Never See
Most sophisticated investors rule hotels and motels out before they understand them, and in doing so they overlook one of the most compelling yields in commercial property today. Hotels and motels are a new asset class in the Australian and New Zealand markets, and one that most investors have never been taught to understand. In this episode of Inside Commercial Property, Scott O'Neill is joined by Selin Ince, Rethink Group's hotels and motels acquisition specialist, to unpack the asset class: the investment structure of hotels and motels, why the misconceptions persist, and why the barrier to entry is far more achievable for the experienced private investor than most assume.
The hesitation almost always comes from one assumption: that the whole category means running a hospitality business. It doesn't. A leased hotel is a commercial lease with a strong tenant covenant, structurally no different from the leased industrial or retail these investors already own. The motel is a separate proposition, a smaller-ticket operating business with real value-add upside for the hands-on buyer. Selin sets out both with precision: the structure, the numbers, the finance, and the entry points that put this within reach of private capital, not institutions alone.
What You'll Learn
- Leased hotels versus motels: one is a passive lease, the other an operating business
- What ownership of a leased hotel really involves, and what it doesn't
- How leased hotel and motel yields compare with industrial and retail
- Where the private-buyer entry points sit, from motels through to passive boutique hotels
- How the finance stacks up, and the first move for an investor ready to take the asset class seriously
Resources
Book a Consultation: https://www.rethinkinvesting.com.au/lets-talk
Explore commercial property with Rethink Investing:
Australia: https://www.rethinkinvesting.com.au/
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