Haysha’s basic rules for hotel investing

In general, Haysha calculated that the hotel must have a $1 USD return from rented room for thousand dollars spent in the construction. In others words, if the hotel costs a total of $5M USD, the average cost of room per day should be $50 dollars for the investment to be cost-effective.
However, the concept and the category of the hotel are determined by the requirements of the market. Nowadays, the most profitable hotels are those in the category of 3 stars (so-called economic-budget hotels). Typically, these hotels provide limited service (bed and breakfast).