Hi,
If I were to invest in a small hotel (purchasing 50% ownership), I know
there are tons of complex financial and demographic variables to
consider, but is there a rule of thumb or two you could share just to
get a general idea if this is in the ballpark of being a decent
investment? As an example, back before real estate went nuts, I bought
a couple of rental condos. At that time, one could generalize that it
was a good deal if the purchase price was under 10 times the yearly
rent. Any similar rule(s) for hotels? Like number of rooms times daily
rate times XYZ? Any thoughts would be appreciated. Thanks very much!