The hotel industry is starting to rebound from the effects of the pandemic. In this episode, Mike Stohler of Gateway Private Equity Group talks about the pros and cons of investing in hotels. Mike also shares the differences between a hotel and multifamily investing.
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Mike starts off by discussing the four differences between a hotel and multifamily. These are flexibility on rent every day with hotels, renters change every day, the hotel is both real estate and a business, and easier turnover. He then talks about being patient, the advantages of having virtual assistants, and why it is important to go out there and be involved in charities. Click the play button now!
Key Points From This Episode:
- Mike shares what his focus is on real estate right now.
- The differences between a hotel to multifamily: flexibility on rent every day with hotels, renters change every day, the hotel is both real estate and a business, and easier turnover.
- Mike shares that the Covid-19 pandemic hit the hotel industry but none of his business has closed down.
- Mike talks about the importance of thinking about what is driving people to your hotel.
- What would have Mike done differently knowing what he knows now about multifamily, hotel, and real estate?
- Mike’s tip: if you have a good property, maybe hold on to it.
- How has Mike improved his business recently?
- Mike encourages entrepreneurs to get out there and be involved in charities.
- The daily habits that helped Mike to achieve success.
- How does Mike like to give back?
“I get to choose my rents (in hotels) every day. I get to change it, I get to position my rent depending on the market. You know, a concert comes into town, man, I’m $60 higher for that night.” [0:04:22]
“Hotels are real estate and a business. So, I own a small business. I own a flag hotel, which means it has a franchise attached to it. I own a Marriott Hotel and it sits on real estate. So, I have an appreciating landmass and I have a business that appreciates, and I can then move and work on the expenses and the revenues.” [0:05:34]
“The biggest difference (with hotel investment) is you have to learn how to run a business instead of multifamily which is just real estate, landlord, tenant, and things like that. So, the biggest thing I tell people is don’t jump into hotels because now you’re running an actual business with 15-20 employees.” [0:07:10]
“In order to grow, I have to delegate.” [0:20:10]
Links Mentioned in Today’s Episode:
About Mike Stohler
Mike Stohler is a former commercial airline pilot, Navy veteran, and co-founder at Gateway Private Equity Group, a real estate investment firm whose portfolio has included hotels, multifamily, and residential properties. Between apartment complexes, houses, and hotels, Mike has owned or operated over 1300 units. Seeking value-add opportunities and higher returns, Mike pivoted from multi-family to hotels and now focuses exclusively on this niche. Key focus: Investing in current “unloved” hotel assets to generate powerful wealth.
When Mike first started in real estate investing in 1999, he lacked experience and failed. Through committed action to learn, grow their skills, and help others, he has created immense change in his business and life.
Since his early beginnings, Mike has seen significant financial gain and wealth generation through powerful real estate investing. Passionate about the impact real estate investing has had on his life, Mike leverages his experience to help busy professionals generate long-term wealth through hotel real estate investments.
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