Fort Lauderdale Hotel's For Sale
This is going to be a post for my investment crowd. With the rise of websites like Airbnb, VRBO, and homeaway, we're seeing that today's traveler is no longer as brand focused as they once were. Traditionally vacationers would look to a major hotel chain when booking a room. Now I see more and more vacationers staying at a residence that is being rented out for the week, or at a boutique hotel. What I'd like to focus on today is the idea of the boutique hotel, and potential investment upside.
If you drive north along the beach in Fort Lauderdale you can't help but notice the large number of low rise hotels that you pass. The vast majority of these hotels are completely outdated, and competing for the lowest nightly rate. A complete race to the bottom of the market. It's terribly sad. Just like in every other type of real estate, when there are underutilized, or rundown properties, there's opportunity. I believe this is especially true in the area that surrounds Lauderdale by the Sea.
The photo above is the Tara boutique hotel set of Fort Lauderdale's North Beach Village. This 11 room boutique hotel is part of a locally run company which focused on buying well located, but outdated (sometimes abandon) structures. These older hotels were brought back to life through renovation, updating, branding, and adding in the overall cool factor. While I'm not privy to the financials of these purchases, it certainly appears that these renovated hotels have been a smashing success. Using North Beach Village as a model, I would seek to apply this to select hotels that run along A1A.
Let me switch from a conceptual to a more financials rationale. Most of the structures I'm referring to can be bought for roughly $300 per square foot. The location would be close to the beach, 3 blocks maximum. For an out of town investor, Fort Lauderdale makes it easy for you. There are a number of hotel management firms in the area which would essentially turn your labor intensive investment, into a turn key one. The idea would be to acquire, renovate, brand, and market the boutique with the goal of achieving the highest cash flow possible. The business of hotels has changed drastically due to the internet. What hasn't really changed is the group of people that invest in hotels. I believe the advent of technology has enabled anyone to own a hotel, in any location, and operate it as a more seamless business than ever before. This is especially true in the smaller hotel space.
If you'd like to kick this idea around some more give me a call or shoot me an email. I can show you a few projects I've been looking at and create some financial models.
I work as a Realtor in Southeast Fort Lauderdale. If you’re interested in buying or selling a home, condominium, or townhouse (townhome) in: Rio Vista, Victoria Park, Downtown Fort Lauderdale, Fort Lauderdale Beach, Sailboat Bend, Tarpon River, Croissant Park, Collee Hammock, Wilton Manors, Oakland Park, Poinsettia Heights, Coral Ridge, or Las Olas Isles, please feel free to contact me at (786)443-7203 or through my email firstname.lastname@example.org. I am a Realtor that works on Saturdays in order to accommodate those with busy schedules.
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Written By Casey Prindle