The hospitality industry is one that is entirely worth investing in. Not only are these properties lucrative investments, but they’re properties that you know have the opportunity of becoming a family heirloom.
Whether you’re considering putting a hotel that you’ve invested in on the market, or you’re considering purchasing a hotel as an investment property, it’s good to know the different classification levels that separate one hotel property from the next. Given that there are so many different classifications to take into consideration, it’s best that we dive right in.
Boutique vs. Flagged
The first classification that we’re going to cover will classify whether the hotel is a boutique hotel or a flagged property. A boutique hotel is the terminology used for a hotel that is independently run. Flagged hotel properties, on the other hand, are going to be hotels that are part of a chain. These are hotels that you can find across the nation and, in some instances, across the world.
Aside from these two primary classifications, there are six different categories that hotel properties can be broken up into. Let’s talk a little bit more about those different categories now.
When a traveler is stopping at a hotel for a while, a full-service hotel is going to offer both room service as well as a restaurant on site. Ultimately, these types of hotels provide guests with more accommodations, making them an ideal place to stay. In most cases, it’s these accommodations that separate these hotels from their competitors and makes them a more desirable place to stay.
Depending on the area of Florida that the property is in, this is something that a majority of guests will be looking for. Even something as simple as a continental breakfast can take a hotel from a limited-service classification to a full-service level. Though it may not seem like a lot, this is certainly something that will be taken into consideration as people make their reservations.
In limited-service hotels, the primary thing that guests are getting is a room. They aren’t going to have a concierge to assist them or the option of room service. When they reserve their room, they are fully aware that they are simply going to be receiving a room for the duration of their stay and that the hotel will not provide any meal services.
The extended-stay classification is one that we are seeing more and more of. These types of hotels are designed with individuals who will be guests at the hotel for periods of a week or more. One of the primary ways that these hotels differ is that the rooms are designed to provide the guests with the typical accommodations one would need for extended periods of time.
Usually, rooms will offer full kitchens in the rooms or larger rooms that provide guests with more space for their stay. These types of hotels also offer laundry services and will usually charge a discounted price recognizing that the individuals will be staying for longer periods of time.
We touched on boutique hotels a little bit earlier, but they also serve as their own classification. As we mentioned, boutique hotels are going to be independent hotels that are also usually smaller in size. While the hotels still offer full amenities to their guests, they often have fewer rooms; both of these factors have both pros and cons to this type of hotel.
This is a hotel term that many people are familiar with. Resorts are one of the more common hotel options when you’re truly looking for a one-stop-shop in terms of your travel plans. The goal with resorts is to provide guests with their room, their dining, and their entertainment. Hotels classified as resorts are often on larger plots of land because of how large the property is. When accommodating for things like a water park, golf course, private beach and then a hotel and at least one restaurant, it’s a given that you’re going to need quite a bit of space.
Most commonly, these hotels are found in tropical places, like Florida. With so many people coming to visit in hopes of a beach vacation, it only makes sense that the hotel they stay at provides them with absolutely everything that they need. For that reason, resorts are extremely popular here.
Let UNIQUE Florida Properties Help
When you’re ready to put your hotel property on the market or find the right hotel to invest in, the team at UNIQUE Florida Properties can help. We have years of experience in the commercial real estate industry and are eager to help passionate individuals find the right property for their goals. Contact us today, and a member of our real estate brokerage team will get you taken care of!