Hotel investing may be one of the most exciting property types for commercial real estate investors in 2022. As the world emerges from the COVID pandemic, hotels are all over the map in terms of their operational and fiscal health.
Many hotels and resorts are benefitting from a rebound in leisure travel, driven by pent-up demand and people becoming more comfortable with travel and flying. Hotels dependent on business travel and conventions are still finding their way out of the abyss. But others, such as extended stay, seem to have hardly missed a beat. Those that have been battered by COVID issues are emerging as investment opportunities.
One way for investors to access hotel investment deals is through crowdfunding. Historically, large-scale real estate deals have been funded through relationships with family offices and directly with institutional investors.
Real estate investment firms can now raise money via crowdfunding, which works as an online exchange. A crowdsourcing platform allows a real estate investment firm to post detailed descriptions and investment offerings divided into more affordable shares. Investors can review and browse various deals and select the investment that works best for them. Add in today’s technology and the ability to take virtual tours or see actual photographs, and potential investors have the world at their fingertips.
As a potential investor, you browse the platform according to your search criteria, then review and research offering documents and materials. When you decide you are ready to invest, the required documents and signatures are handled online. Finally, you can purchase your shares in a number of convenient ways, including online transfers.
Crowdsourced commercial real estate investing is here to stay and will undoubtedly change how individuals approach commercial real estate. No other investing innovation has made it easier for individual investors to participate in larger, institutional-quality deals across a greater range of asset types.
It’s also critical to remember that at the end of the day, while crowdsourcing is new and exciting, not all platforms are created equal. Investors must still consider the quality of each deal and the experience of the people behind it who are driving its management, value-add strategies and exit plans.
Are you interested in investing in hotel properties through crowdfunding? Sign up with Lloyd Jones to learn more about senior-housing investment opportunities.