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5 Reasons Itu2019s Time to Consider Investing in the Hospitality Sector
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5 Reasons It’s Time to Consider Investing in the Hospitality Sector ___ When Regulation A+ went into effect in 2015, it unlocked a property market traditionally restricted to institutional investment. Specifically, companies were given the green light to raise up to $50 million in new capital through equity crowdfunding. That’s why we founded HotelierCo with one goal: to allow anyone “in the crowd” to become a hotel owner — not just wealthy, accredited investors. Our online platform allows people to invest in exchange for equity, or a percentage of ownership in the company. Since ownership of hotel real estate properties is closely tied to the business of hospitality management, our team at HotelierCo knows how important it is for each
2 of our investors to understand the dynamics of the hotel industry, as well as the benefits of becoming a hotelier. Though the hotel industry began with individual properties owned and managed by entrepreneurs, today it is mostly controlled by national and international chains. However, instead of owning the properties themselves, many major chains simplify the process by developing and managing hotel properties for outside investors. Read on to discover why now is the time for you to consider investing with HotelierCo. Reason 1: Tax benefits We know that appreciation and capital gains are benefits to real estate ownership, but depreciation is an added advantage. Though depreciation may decrease the accounting value a real estate asset — as most assets decline in value over time — it does not affect the property. depreciation can be used as a resource for tax benefits, allowing hotel investors to claim a passive “loss” from depreciating improvements. It is important however, the tax benefits of depreciation are contingent upon the investor’s taxable income. market value That’s of a why to note, Reason 2: Diversify your portfolio “Investing in different asset classes and in securities of many issuers in an attempt to reduce overall investment risk and to avoid damaging a portfolio’s performance by the poor performance of a single security, industry, (or country).”
3 When seeking to reduce exposure to any one type of risk, it’s best practice to spread your funds spectrum of investment Because real estate is a tangible asset — and not as prone to fluctuation as the stock market — investing in the hotel industry is an effective way to diversify portfolios that are backed by hard assets. across a vehicles. broad Reason 3: It’s a profitable sector A indicates travel and tourism is one of the world’s fastest-growing sectors, with close to $1.6 trillion in bookings and $62.5 billion total global hotel transaction volumes, respectively, in 2017. In addition, Smartbrief, a record $170 billion in gross U.S. hotel bookings is forecasted for 2018. recent study by Deloitte.com according to Reason 4: Reap the benefits of being a hotelier
4 Owning and operating a hotel is rewarding, but equally demanding. Fortunately, HotelierCo investors get to enjoy the perks of being a hotelier at a fraction of the cost — without the hassle. HotelierCo members can also take advantage of access to exclusive hotel loyalty programs and discounted rates among other unique offers. Reason 5: It’s easy to get started [with us] You don’t need specialist knowledge to start investing in property, nor to become a hotel owner — our team at HotelierCo simplifies the process for you. Source: https://www.hotelierco.com/reasons-to-consider-investing-in-the-hospital ity-sector/