Which are better investments, hotels or apartment complexes?

In general, would an apartment complex or a hotel provide a better ROI?

My current theory is that they are the same building, except a hotel has guests turn over faster and charges a higher rate?


An apartment building has kitchens and bedrooms with a bath or two where hotel rooms have a room and a closet / closet area and a bathroom.

A good hotel can make good money as well as a good apartment property can make good money.

Your return on investment is all about money (Finances) as cap rate is the premise for determining value!



What do you think about this? In my cap rate formula, I don’t include the whole price of the asset. I only include the down payment. This is because the rest is financed and will be reflected in the NOI because a loan payment will be taken out.


Go Google and read about "Cap Rates" and how they are calculated, then we'll talk!



I already did.

I think investing in apartment complexes are more profitable that collect even more rent

I think it depends on the deal.


That was a good answer Redstar, you are learning!


It was bound to happen at some point.

Recommendations to potential hotel investors:

Know your market: study the industry where you want to invest.
Know what’s out there: explore the opportunities to leverage your investments for better returns.
Know your contract — get a full translation of the contract and read it.
Know your target segment — 3 and 4-star hotels are more popular than luxury 5-star suites.
Think differently — guesthouses outside the centre can be just as profitable as hotels in the capital.
Prioritise: property in the UK and France have an excellent reputation for reliable investment.

How exactly do I “study the industry?”