When it comes to investing in commercial property in the U.S., hotels are among the hottest commodities. The hotel business is gradually increasing in demand with more and more travelers visiting the U.S. from all parts of the world. There has been an increase in the number of U.S. investors in U.S. hotels, as opposed to the previous trend of foreign investors in U.S. hotels. The reasons are many, but to learn more about the main circumstances driving U.S. investors to put their money into these hotels, read further.
Growth of Certain Cities
As always, some cities, like New York and Los Angeles, always have a high demand for tourism. But it turns out that many other cities in the U.S. are becoming more and more popular among tourist destinations, especially those close to the water, and therefore the demand for hotels are increasing, peaking the investors’ interest. Investors are increasingly becoming interested in cities that need a little help rebooting and revitalizing their tourism district.
If the city seems promising, the investor is willing to take the risk to establish a hotel system and boost the economy in the city, thus boosting their own commercial real estate investment in the process. Hotel businesses not only help the tourism market but also the job market in these cities as well, as they provide more jobs to the Wilmington NC community.
Renovations That are Worth it
Some investors see the worth in hotels that have previously been running and since gone bankrupt for various reasons that have nothing to do with the growth of tourism in the area. The investors will take a look at the overall state of the hotel itself, as well as the city it is located in, and determine that the cost of renovating and reopening the hotel is well worth the expense.
These renovations, especially if they are historic in nature, can also help to revitalize the city and grow the tourism industry as well. Most investors are interested in hotels that can offer rooms for guests up to 300 or more, as that is where the return on investment is most significant. These hotels are more likely in downtown areas or cities with higher populations and greater need for tourism or traveling business people.
This growth in U.S. investors to the U.S. hotel industry is a great boost for the American economy and tourism business. Hopefully, the trend will continue to increase in the coming years. Contact us today for a full list of available commercial real estate investment spaces in Southeastern NC.