Hotel Developers

Written by Johnny Kitchens
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A hotel's success is tied to the same guiding principle as success in any real estate investment which is: location, location, location. It is very difficult for a hotel to succeed in a location where people do not want to go. It is possible to create a destination where none was before (Las Vegas being the prime example of such) but it is infinitely more difficult and expensive. The other side to that coin is that real estate with high current desirability also carries a higher price tag.

Hotel development entails not only real estate acquisition but also architectural design, interior design, construction, marketing, human resources, landscaping, and guest services. New hotels require the coordination and cooperation of many individual companies and contractors. As an investor, you can be involved in any single part of that process or you can be involved in every part by investing in the hotel project itself rather than in individual hotel services or construction companies.

Hotel development is also rarely something that can be undertaken without the participation of many financial partners. If you feel you do not have the resources to participate in such a large project, you are in the majority of investors. However, you can partner with a large consortium of investors to share the bill and share the profits. The rules governing IRAs allow for investments all over the world so you should not limit yourself to a small geographical area.

Investing in Far-Flung Parts of the World

Before you decide to contribute your IRA funds (or any investment funds) to projects around the world, you should educate yourself about the local laws and regulations regarding the development, construction, and operation of that investment. You should also look into local tax laws concerning foreign investments and the security of your funds in case of disaster or delay. You can sometimes secure your investment with a strong agreement up-front as to how much risk you are willing to assume.


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