Which is more profitable to build- a hotel or a business complex?

[Etini]

Hotel business is very lucrative. A business complex is equally lucrative. But which one among the two would be more profitable to be built on a plot of land in the center of a major city? Let's look at it empirically.

There is a great possibility that a business complex would be all rented out within months of completion making you to start earning money immediately. Whereas a hotel would have to start establishing pedigree and building a name before it could start getting patronage. So you might have to wait before you start getting money from a hotel.

In the long run though, I think a hotel is better than a business complex. With a hotel, you would be earning on a daily basis while for a business complex , you would be paid rent once a year. A hotel looks more profitable. I would choose a hotel over a business complex.

 

[Sotherefore]

In as much as both of them can be profitable in a better location , but having an opportunity to choose one out of two means that we have to choose the most suitable and the most profitable after we have put so many things into consideration.
If the location is a tourist centre or closer to a Tourist attractions centre like wildlife reservation or some other things then it is much more profitable than hotel should be built in such locations as you will always have a lot of people who may be interested to lodge in the hotel.

But in a normal busy environment I believe it is much more profitable that we establish a supermarket . Apart from all those things , the cost of building and establishing all these things must be put into consideration obviously as we all understand hotel will be the most expensive.

 

[Mika]

I don't have any experience with investing in real estate, therefore, anything I say will be based on my reading and observation, and it might not be the whole truth. However, based on my assumption I can say investing in a business complex will be more profitable. If you invested in a hotel, you might also have to operate the hotel. The hospitality industry is in a bearish run since the start of the covid pandemic three years ago. This situation has been even exacerbated by the global financial crisis. Therefore, everywhere the hotel business is a loss-making business and this could last even for years. This does not mean investing in a business complex is profitable. Due to the current global recession, this business also does not seem profitable, however, compared to a hotel business this seem to be somehow profitable because you will be basically making passive income by renting out your business space.

 

[Shigobad2020]

I believe building an hotel and also building a business complex are both good and lucrative business deoending on the location you found yourself and it also depends on what you like personally and an estate investor .
First I believe hotel business can be built if you have the resources and you realises that people normally comes into the location to lodge and have fun , you can't build an hotel in a remote area , that will be a waste of money and resources .
I prefer building a business complex in an urban business and crowded area where people can rent shops and keep paying on a monthly basis and if at all the business is doing well in that particular area , you just need to keep increasing your rent money thereby you will keep making more money and profit . All you need is a good location .