Unlike other real estate investments, hospitality properties are operating businesses that require specialized understanding of both the real estate and operations side of the business. Coldwell Banker Commercial Metro Brokers affiliated hospitality professionals offer experience in hotel operations management, hospitality occupancy and revenue trends, real estate and valuation, and will tailor their services to meet your specific needs.
While there are five primary hospitality revenue sources that may determine a property’s value - travel and tourism, food and beverage, lodging, entertainment and recreation, and meetings and events - and they are each highly interconnected. Often a single commercial property will span multiple sectors, allowing the business to provide a complete and enhanced consumer experience.
The purpose of travel and tourism is to drive business to the hotels, restaurants, meeting and recreation venues that make up the hospitality industry. Many factors can impact how much a visitor will spend - the distance they’re traveling, length of stay, number in their party, whether it’s for leisure or business, and certainly their travel budget. Whether it’s a quick day trip to a nearby city, a week-long family vacation or attending an industry convention, travelers will spend on dining, accommodations, entertainment, shopping and on travel itself.
The most significant sector of the hospitality industry, food and beverage is a vital part of all hospitality businesses. From free-standing restaurants, quick service amusement park venues and hotel fine dining restaurants to conference center lounges or catering venues, food and beverage offers both revenue opportunities and enhanced guest experiences.
This expansive sector can include everything from roadside motels, bed and breakfasts or extended-stay suite hotels to five-star resorts or conference hotels. Accommodations where guests can sleep overnight often cross into the other sectors, including restaurants, entertainment, meetings and certainly travel and tourism. Unlike most other real estate investments, lodging involves operating businesses that require specialized management to address the daily income stream shifts attributed to occupancy and seasonal fluctuations. Understanding the cyclical nature and dynamics of hotel markets is critical to making sound investments.
The entertainment and recreation sector attracts consumers with disposable income both near home and when traveling. Businesses like cinemas, theaters, arcades, zoos, concert halls, night clubs, museums and theme parks provide entertainment and revenue opportunities, and can often be found within lodging and meeting venues.
Many cities rely on meetings and events to attract visitors for business and leisure who spend money on lodging, food and beverage and shopping. Business meetings can range from small off-site meetings and local networking events to expos, conferences, industry conventions and trade shows. Events can include weddings, sporting events, concerts, festivals, touring Broadway shows and seasonal events, and they are a lucrative way to attract visitors.