How to Invest in Hotels Without Money or Experience

Jun 25, 2025

Sujay Mehta, a hotel investor and operator, shares his journey from single-family homes to unlocking the cash flow potential of hotels without a hefty investment. He debunks the myth that you need millions to start and discusses creative financing options for novices. Sujay highlights the differences between boutique and branded hotels, providing essential insights on choosing the right investment. Plus, he shares tips on avoiding common pitfalls and the keys to operating a profitable hotel business, making this a must-listen for aspiring hotel investors!

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INSIGHT

Hotels Often Franchisee-Owned

Many hotels people perceive as owned by big brands are actually franchisee-owned small businesses.
Franchise owners are often individuals or families, not large corporations, dispelling a common misconception.

ADVICE

Hotel Financing Options

Use SBA loans, community banks, or private capital like seller financing to fund hotel purchases.
Explore creative financing methods as many hotel owners prefer seller financing for renovation relief.

ADVICE

Joint Ventures Simplify Raising Capital

Joint ventures are simpler and cheaper legally than syndications for raising capital.
JV partners have operational roles and rights, making it easier for rookies to start with trusted contacts.

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Tired of rentals that give you little or no cash flow? Burned out from managing multiple properties across different markets? For the entrepreneur who wants to make bigger strides toward financial freedom, today’s guest will share an investing strategy with higher upside—a scalable real estate business that gives you many income streams under one roof: hotel investments!

Welcome back to the Real Estate Rookie podcast! Like many investors, Sujay Mehta started out buying single-family homes. But when he discovered the enormous cash flow potential of hotel investing, he found a few partners and scrounged up the money to buy his first hotel. The myth that you need millions to buy a Marriott or Hilton? Sujay shatters it in today’s episode and provides a step-by-step blueprint that makes finding, funding, and operating hotels much easier than you thought possible!

Stay tuned as Sujay discusses the different types of hotels you can buy and points you toward the perfect first investment for any rookie who’s looking to break into the space. Along the way, you’ll learn three ways to analyze a hotel deal, some common pitfalls to avoid, and the keys to a profitable hotel business!

In This Episode We Cover

Why you DON’T need millions of dollars to start investing in hotels

Creative financing options for new hotel investors (even with low money!)

Boutique versus branded hotels (and which one rookies should invest in)

Fast-tracking financial freedom with a business-plus-real estate investment

Three easy ways to analyze a hotel deal (as a complete beginner)

Costly operational mistakes to avoid when building your hotel business

And So Much More!

Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/rookie-579

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