Hospitality Investment Opportunities
Select-Service Hotels in Florida
Mid-tier brand flags combining limited-service efficiency with upscale amenities
Select-service hotels sit between limited-service and full-service — premium brand flags like Courtyard by Marriott, Hilton Garden Inn, Cambria, and Hyatt Place. They offer limited F&B, small meeting rooms, upscale finishes, and stronger ADR than limited-service peers. Cap rates run 7.0% – 8.5% for stabilized product.
Typical Deal Size
$12M – $50M
Mid-tier brand flags
Common Cap Rate
7.00% – 8.50%
Between limited and full-service
Room Count
100 – 200
Efficient upscale format
Select-Service Hotel Property Formats
Full-Service Hotel
F&B, meeting space, high service levels. Institutional urban and airport product.
Limited-Service / Select
Brand flags like Holiday Inn Express, Hampton. Most active trading category.
Boutique Hotel
Independent or soft-branded. Personality-driven premium RevPAR potential.
Extended-Stay
Residence Inn, Homewood, TownePlace. Durable business travel demand.
Resort
Beachfront and destination resorts. Trophy-class, longest hold horizons.
Motel / Economy
Older exterior-corridor product. Value or redevelopment plays.
Select-Service 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 Select-Service 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 Select-Service 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
Select-Service 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
Select-Service 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 Select-Service Hotels
Tell us your hospitality investment criteria and we will send you current Florida opportunities.