How to choose the right property for hotel development

Developing a hotel is a significant investment. You and any partners you have are under considerable pressure to make the right choices to see a profitable return. One of the biggest choices you will face is choosing the commercial real estate property for your hotel. What should you consider? What should you evaluate carefully?


The first—and most obvious—consideration is location. As the saying goes, location, location, location. It truly matters most. However, it may not be for the same reasons anymore. A hotel does have to be in a space that creates traffic, ideally somewhere with restaurants and other activities and nightlife. However, it does not necessarily have to be visible and accessible to foot traffic, thanks to GPS.


According to Hotelier magazine, when choosing a location in 2020, it’s crucial to think about branding. The location you choose will reflect on the brand of your hotel, whether you like it or not. Will it complement the brand you wish to evoke? Will the location and attractions it provides draw in the audience you seek to serve?

Site Specifications

These are the more tangible facts of the site, including utilities, environmental factors and zoning. Are there any problems with these features? Will you have to invest significantly to update anything? What environmental factors are at play—is there any contamination at the site? Can the soil support a large complex like a hotel? If the land is not zoned for hotel use, it could be time consuming and costly to get that changed. It may or may not be worth it, depending on the other conditions you find.

Finding the right site for development is vital as this will be a project that will likely be part of your life for years to come. These are just a few guidelines to get you started on the right track.