Hospitality Investment Opportunities

Boutique Hotels in Florida

Independent and soft-branded hospitality with personality-driven design

Boutique hotels are smaller (typically 30–150 rooms), design-forward, and either independent or soft-branded (Curio, Autograph Collection, Tribute Portfolio). They command ADR premiums over generic flags and appeal to leisure travelers, content creators, and premium business travel. Excellent fit for creative owner-operators.

Florida CRE
Boutique Hotel

Typical Deal Size

$6M – $80M

Independent or soft-branded

Common Cap Rate

7.00% – 8.50%

ADR premium potential

Room Count

30 – 150

Intimate boutique scale

Boutique Hotel Property Formats

Full-Service Hotel

Cap Rate: 6.50% – 8.00%150 – 500+ rooms

F&B, meeting space, high service levels. Institutional urban and airport product.

Limited-Service / Select

Cap Rate: 7.50% – 9.00%80 – 200 rooms

Brand flags like Holiday Inn Express, Hampton. Most active trading category.

Boutique Hotel

Cap Rate: 7.00% – 8.50%30 – 150 rooms

Independent or soft-branded. Personality-driven premium RevPAR potential.

Extended-Stay

Cap Rate: 7.25% – 8.50%80 – 150 suites

Residence Inn, Homewood, TownePlace. Durable business travel demand.

Resort

Cap Rate: 6.00% – 8.00%150 – 1000+ rooms

Beachfront and destination resorts. Trophy-class, longest hold horizons.

Motel / Economy

Cap Rate: 8.50% – 11.0%30 – 100 rooms

Older exterior-corridor product. Value or redevelopment plays.

Boutique Hotel Investing: Pros & Cons

Hospitality is more operationally complex than any other CRE asset class — but offers higher yield and reinvestment optionality.

Why Buy

  • Highest Cash Yield in CRE

    Limited-service and boutique hotels often yield 8–10%+ in-place cap rates.

  • Tourism Tailwind

    Florida's visitor economy has rebounded fully from COVID and continues to grow.

  • Pricing Power

    Hotel rates reset nightly — inflation captured instantly, unlike long-lease CRE.

  • PIP Reinvestment Upside

    Property improvement plans refresh product and drive ADR gains.

  • Brand Flag Support

    Major franchise brands bring reservation systems, loyalty programs, and marketing scale.

What to Watch

  • Operational Complexity

    Hospitality requires active management, specialty accounting, and daily operations oversight.

  • High Fixed Costs

    Labor and insurance are material cost lines with less flex than other CRE.

  • Brand PIP Obligations

    Franchise agreements require periodic PIPs — underwrite reserve requirements.

  • Economic Sensitivity

    Hotel demand is the most economically sensitive of any CRE asset class.

  • Insurance Cost Explosion

    Florida hotel insurance has exploded — especially beachfront product. Underwrite carefully.

Who Boutique Hotel Is Best Suited For

Hotel Operators

Platform Builders

Management companies building multi-property flags across Florida.

Why It Fits

Direct operator acquisitions at scale.

Private Equity

Yield Seekers

PE firms with dedicated hospitality strategies targeting Sunbelt markets.

Why It Fits

Florida is the #1 target market for PE hotel capital.

Family Offices

Trophy Assets

Multi-generational wealth acquiring trophy Florida hospitality assets.

Why It Fits

Beachfront resorts and boutique hotels.

1031 Buyers

Fast-Close

Exchange buyers looking for yield and cash flow.

Why It Fits

Limited-service hotels offer clean 1031 execution.

Key Boutique Hotel Underwriting Metrics

Occupancy

65–75% stabilized occupancy for limited-service Florida hotels

ADR (Average Daily Rate)

$110 – $250+ for Florida limited-service; resorts much higher

RevPAR

ADR × Occupancy — the critical hospitality performance metric

Labor % of Revenue

28–38% for limited-service; 40–50% for full-service

FF&E Reserve

4% of revenue annually for furniture, fixtures, equipment replacement

Franchise Fees

10–14% of room revenue including royalty, marketing, and reservation fees

Browse Active Listings

Boutique Hotel Deals on Major CRE Marketplaces

Want to see public hospitality listings? These marketplaces cover Florida hotels.

Crexi

Tech-forward CRE marketplace

Growing inventory of Florida hospitality listings.

LoopNet

Largest CRE listings network

The biggest pool of hotel listings in Florida.

HVS Brokerage

Hospitality specialist

Specialty hotel brokerage with institutional Florida inventory.

The best hotel deals trade through specialty hospitality brokers and off-market owner relationships. tell us what you're looking for.

Frequently Asked Questions

Boutique Hotel Investor FAQ

What's driving Florida hospitality demand?

130M+ annual visitors, the country's #1 theme park market in Orlando, year-round beach tourism, international gateway cities, and business travel recovery. Florida's tourism economy is the most durable in America.

How do I underwrite a hotel deal?

Focus on RevPAR trends (ADR × occupancy), market penetration vs competitive set, PIP reserve requirements, franchise fee structure, and conservative insurance underwriting. Hotels trade on NOI, not just cap rate — operating leverage matters enormously.

What's the difference between franchised and independent?

Franchised hotels operate under a brand flag (Marriott, Hilton, IHG) with access to reservation systems, loyalty programs, and marketing. Independent hotels offer more flexibility and higher operating margins but lose brand distribution. Most institutional hospitality is franchised.

Is This You?

Quick Fit Check

If you nod "yes" to three or more of these, Florida hospitality has a place in your portfolio.

  • You want the highest cash yield among major CRE asset classes.

  • You believe in Florida's durable tourism and business travel demand.

  • You have hospitality operating expertise or a trusted third-party manager.

  • You can underwrite insurance, PIP, and labor costs conservatively.

  • You want pricing power that resets nightly rather than long-lease structures.

See Available Boutique Hotels

Tell us your hospitality investment criteria and we will send you current Florida opportunities.

Property types of interest

Your information is kept confidential. No spam — only relevant opportunities.

Get Market Insights Delivered

Weekly Central Florida CRE updates — cap rates, new listings, market trends, and investment opportunities. No spam, unsubscribe anytime.