In addition to being able to stay in their rooms whenever they want, buyers can make money by leasing out the units to others. Most hotel operators run services that will match rooms with customers and send a healthy fee to the room owner.
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The income you receive from a hotel room investment is passive. The management company do all the things that a landlord would normally do. They market the property, take bookings, collect 'rent', conduct exit checks, and keep the room clean and well maintained.
Hotel investors can benefit enormously from their investment due to the possibility of high returns, the opportunity to capitalize on favorable tax rules, and the ability to diversify a property portfolio.
The hotel and lodging industry is lucrative enough to have created some of the heaviest financial hitters the world has ever seen. With a net worth of $21.8 billion, Sheldon Adelson is the 12th wealthiest American and the 24th richest man on Earth.
There are hotels, and then there are luxury hotels favored by the ultra rich. The Bellagio and Caesars Palace are surprisingly popular with the world's richest people.
Small hotels that have a high RevPAR and profit margin generally have a better ROI than those with lower numbers. Small hotels that have a high ROI are able to invest in improvements to the hotel, such as renovations or new amenities, which in turn can further improve their ROI.