Why budget hotels are a profitable choice
The HinduOne segment is quietly outperforming expectations and delivering higher returns within the world of real estate investment: budget hotels. Budget hotels have emerged as a smart investment strategy by focusing on lower construction costs, operational efficiency, and consistent demand, outperforming their luxury counterparts in real estate returns. Furthermore, because budget hotels typically have fewer rooms compared to luxury hotels, the overall investment is lower, making these properties more accessible to a wider range of investors. Fewer amenities Another reason budget hotels outperform luxury hotels in real estate returns is their streamlined operations. This operational efficiency translates into higher profitability, with budget hotels achieving net operating income margins of around 45%, compared to 40% for luxury hotels.
Discover Related
