A property which derives its income by offering temporary room and board is typically considered a hospitality property.
The most favorable financing options are extended to flagged properties, which are hotels or motels that have
national or prestigious recognition. All financing options for hospitality properties are based on the history of the
operations for existing properties and the area trends for new and repositioned properties as well as the knowledge and
experience of the operators and owners.
Once you buy a hotel/motel, you buy the real estate and a 24-hour-a-day 365-day-a-year business. This business requires
hard work, and marketing skills to get the rooms filled. The rooms are worthless if they are vacant. The business tends
to be seasonal and may be affected immediately by economic downturns and political events, e.g. 9-11.