A hotel owner told me something recently that stuck: “No one got rich with hotels, but everyone who is rich, has a hotel.”
It reflects a common truth in our industry: Hotels are often seen as trophy assets, accessible only to the wealthy. For many aspiring hoteliers, the sheer capital required makes ownership feel out of reach. But hotel ownership doesn’t have to be the exclusive domain of the ultra-wealthy. In fact, there are multiple pathways into ownership that rely more on creativity, deal structure and partnerships than deep pockets.
Based on my own experience as both a hotel owner and asset manager, here are some practical approaches.
1. Rent the Property
Renting rather than purchasing avoids the largest upfront cost—real estate. My first foray into hotel ownership was structured entirely this way, simply because the property’s ticket size made buying unrealistic. We followed a PropCo/OpCo model: The property company (PropCo) owns the real estate, while the operating company (OpCo) runs the hotel business. In this case, I owned the OpCo, not the PropCo. This structure allowed us to step into ownership of the business without needing to acquire the underlying asset. Rent will likely be your biggest ongoing expense, so the numbers must stack up. In our case, our profitability before rent exceeded 80%, which gave us enough margin to cover the lease and still turn a healthy return. This approach enabled us to focus capital on operations, branding and guest experience, while making hotel ownership achievable from day one.
2. Secure a Lease That Provides Stability
While renting offers flexibility, securing a lease with built-in longevity provides control and confidence to invest. A long lease (traditionally 20 years or more) is often seen as closest to ownership, but hybrid models can also work. For example, in one hotel, we negotiated a 5+5-year lease (a contract for a commercial property with an initial five-year term followed by an option to renew for another five-year term), which gave us the initial security we needed, with an option to extend. This created the stability to confidently invest in renovations, rebranding and service delivery.
3. Bring in Shareholders
Partnerships with trusted investors or co-owners allow risk and responsibility to be shared. With the right shareholder structure, ownership becomes more achievable and less capital-intensive.
4. Explore Financing Options
A traditional bank loan remains an important route, but it’s not the only one. Specialized finance institutions offer tailored solutions for hospitality businesses, often with more flexible terms than traditional lenders.
5. Consider Seller Financing
In some cases, the seller may agree to finance part of the purchase price, payable over time. We negotiated this for one of our properties, with the seller covering part of the costs for the first six months, tied to a milestone payment. This lowered our upfront capital needs and gave us breathing room to launch operations before the full payment was due.
6. Investors Pitch
A well-prepared pitch, supported by credible ROI projections, can attract investors who want exposure to hospitality, but don’t wish to operate a hotel themselves. For aspiring owners, this means leveraging expertise while sharing the financial load.
7. Fund Growth With Future Revenue
Expansion doesn’t always require outside capital. We financed part of our second hotel using newly generated cashflow from our first location, combined with prepaid rate sales. This reinvestment strategy allowed us to fund growth directly from operations, without diluting ownership or taking on unnecessary debt.
Hotel ownership is not reserved only for the very rich. Sure, significant wealth makes the journey easier, but with creativity, the right financial structures and strategic partnerships, ownership is possible even for those without vast resources. The hospitality industry rewards those who are resourceful and determined. For aspiring hoteliers, the dream of ownership should not be dismissed as unattainable.
Don’t just dream of owning a hotel—make it happen.
This perpsective piece was contributed by Pierre Marechal, VP, advisory & asset management, JLL Hotels & Hospitality Group.
