320. Leisure-Driven Hotels Are Recession-Resistant With Whitney Elkins-Hutten

Oct 14, 2022

Whitney Elkins-Hutten is the Director of Investor Education at PassiveInvesting.com and a partner in $700MM+ in real estate — including over 5000+ residential units (MF, MHP, SFR, and assisted living) and more than 1400+ self-storage units across 8 states—and experience flipping over $3.0MM in residential real estate.

 

In this episode, Whitney discusses the unique benefits of investing in hotels. Hotel properties have historically provided stable returns and appreciation without high operational expenditures. She explains that while hotels may not be the best choice for all investors, they are a great option for those looking for a leisure-oriented property with a corporate overlay. She shares that she is interested in markets that have been impacted by air travel, such as Hilton Head, which is a destination that people would naturally visit regardless of air travel. She believes that travel trends will continue to move in this direction and are looking for markets where this trend already exists. To learn more about Whitney and her short-term rental businesses, listeners can visit her website at https://www.passiveinvesting.com/whitney/!

 

[00:01 - 05:03] Opening Segment

 

• Whitney discusses how hotels are an interesting real estate niche

• She says that hotels are a good investment for those who want to invest in a luxury tier without having to spend a lot of money on operational costs   

 

 

[05:04 - 10:16] Leisure-Driven Hotels Are Recession-Resistant

• Hotels provide stability and appreciation without high operational costs
• She discusses how her company’s focus on acquiring leisure-driven hotels, which are seen as recession-resistant
• Her company is conservative in its approach to underwriting
• The operational play focuses on capturing rent at a break-even occupancy rate while underwriting at a high occupancy rate to ensure profitability

 

[10:17 - 17:04] Acquiring Hotels And Renovating Them For Local Travellers

• Whitney shares how her team is acquiring hotels, renovating them, and then selling them to investors
• Her team’s experience in hotel development and management
• The properties are expected to have a similar return profile to multifamily and self-storage
• Local travel is becoming more popular, and it’s cheaper than international travel    

 

[17:05 - 19:20] Closing Segment

• Whitney shares some tips on how to invest in real estate using passive investing methods
• Whitney shares where you can get in contact with her (links below)

Quote/s:

“We're looking for markets where the travel trend was already there… Regardless of air travel or international travel. And so, those are the type of markets that we're looking for.” – Whitney Elkins-Hutten

You can connect with Whitney through her:
Website: https://www.passiveinvesting.com/whitney/ 

LinkedIn: Whitney Elkins-Hutten

 

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Visit my website www.luxe-cap.com or my YouTube channel

 

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