Understand the differences between these two sectors of the business.
If you are looking for a safe long-term investment, buying a hotel is a great solution.
Check out the article “10 Reasons to Invest in Hotels”
Hospitality is an international industry and it’s on its way to becoming a global one. You can choose between enormous hotels in big city centers and lovely boutique hotels in the countryside. Some focus on business travelers, others on tourists, families, and even millennials: every hotel has a unique identity and that’s the magic about the business.
One of the questions you should ask yourself is: Should I invest in a hotel operated independently or operated by a hotel chain? The competition between these two options is growing and both of them are always focused on redefining the guest experience.
An independent hotel that is independently owned and operated, so it represents a more unique brand. Due to this fact, it is an investment more suitable for a niche market. The purpose of their activity is narrowed down to represent the “vision” of the organization and their strategies are more cut and clean due to the availability of capital.
Independent hotels are not physically represented across the world, but thanks to the internet they can reach their audience worldwide.
Being independent means having more flexibility in terms of standards. If you operate a hotel you don’t need to follow rules from outside, you can adapt and adjust necessities in loco according to your customer and market needs. They are famous among the Millennials because they are constantly seeking new experiences in new environments, and they represent a huge volume of travelers.
A chain hotel is a hotel that is part of a major group of hotels operated by the same company. Meaning that a single company determines the operation of all the hotels in the same group in all the different locations. They can be total or partial owners of the hotel and they manage their administration, marketing, and promotion.
Chains have a massive network distribution worldwide, in fact, the global hotel industry is dominated by hotel chains.
Luxury chain hotels are famous for their standards. If you book a hotel from a renowned brand you know that you’ll get premium service no matter the location. They are famous amongst business travelers because they are a safe choice and usually they benefit from Loyalty Programs.
What type of hotel fits your profile as an Investor?
We have both options available for you in our portfolio. Exceptional Independent hotels like this one in Lake Geneva, Switzerland, or Opulent hotel Chain in Dusseldorf, Germany.
Get in touch with us, and we’ll give you a tailored solution to perfectly fit your investment portfolio.
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