The Rich Somers Report Revamping a Boutique Hotel : How We Bought Our Recent Hotel Deal in Just 37 Days & Plans to Optimize the Property | Alex Johnson (Saturday Edition) E323
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Mar 22, 2025 Discover how a boutique hotel deal was closed in just 37 days, thanks to a strong broker relationship. Hear about strategies to boost property value without a full renovation and the importance of enhancing guest experiences. The conversation dives into innovative revenue streams like amenity fees and cell tower leases. Additionally, explore the trends shaping boutique hotels and the vibrant community around their investment journey, all while maintaining a focus on teamwork and growth in the industry.
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San Clemente Acquisition
- Rich Somers acquired a boutique hotel in San Clemente, California, in 37 days through a broker relationship.
- The deal came about due to the seller's divorce and the hotel's underperformance despite a prior renovation.
Boosting NOI with Amenity Fees
- Partner with local businesses to offer amenities like breakfast, which justifies amenity fees.
- These fees boost NOI and property valuation significantly, a key advantage of boutique hotels over residential real estate.
Long-Term Boutique Hotel Strategy
- Buy underperforming boutique hotels in A-plus locations, renovate, and hold long-term.
- Refinance multiple times, then exit with a portfolio sale to maximize returns by attracting institutional buyers.