Monday, June 12, 2017

How Penny Stock, Micro Cap & Small Cap REITS Can Benefit From Small Hotel & Motel Investments (Entrepreneurs Too!)

Some penny stocks looking to increase revenues or even begin to produce revenue may want to look at the hotel and motel market for sizable returns with little to no money down.  This could also work for just about any entrepreneur or private company. 

As some of my reader may know, I invest in land via Homeskape (see for some of my land listings).  I have decided to invest in multifamily apartment complexes and in my search I ran into an under priced motel for sale.  I'm trying to buy it and doing my due diligence as I am writing this post.  In the process I have been educating myself on the hotel and motel industry and how deals are structured.  As you can imagine every deal is different and the possibility to get into a deal with little money down exists.  In fact, there are some hotel deals that you can get for Free!!  Well sort of.  There are many instances where the owner of the motel or hotel just wants out of the deal.  It could be because they are ready to retire or they made all the money they need to make or a partnership is splitting up.  Whatever the reason....there are deals to be made. 

In this video Mike Hambright from interviews Jason Schubert.  Jason is a hotel owner that allows consults on how to buy and manage a hotel.  If you listen between the lines you can find some gems on hotel and motel investing. 

In my search to educate myself on buying a motel or hotel I also ran across this video from 2014 that was recorded at the 2014 New York Boutique Investment Conference.  This video also has a host of experts and operators that discuss attributes of boutique hotels and dynamics of the industry. 

After doing a quick analysis of the industry it seems to be under served in the micro cap world.  Smaller companies and entrepreneurs are well suited to work out deals with hotel owners or motel owners; especially those properties that are under performing.  In the micro cap sector I see hotel and motel deals as some of the best reverse merger or acquisition opportunities on the market today.  Penny stock, micro cap & small cap reits can benefit from small hotel and motel investments  because they add instant revenue to the company instantly, in many cases have upside potential, the acquisition puts assets on the books and in some cases keeps the prior owner as an equity partner (thus leaving the debt off the books).  Hotel and motel acquisitions are also a solid way for smaller companies to start paying a dividend; if they so wish. 

These are just a few thoughts I had when reviewing the sector.  What do you think?  Comment below, I respond to every comment. 

-Nick Coriano

About the Author: Nicholas Coriano is a Business Consultant.  He is a graduate of The University of Connecticut Business School and the John Marshall Law School in Chicago.  He has worked at Merrill Lynch, The New York Stock Exchange and is currently a partner at Cervitude Intelligent Relations, which specializes in Investor Relations for companies valued under $1 Billion USD.

About MicroCapCompany.COM: MicroCapCompany.COM (The Blog) is a blog focused on providing articles, news and information on the micro cap sector and start-ups.  The Blog is a free service offered by Cervitude™ Investor Relations - a micro cap investor relations firm for micro cap companies and penny stocks.  If there is a particular topic you would like to see covered on The Blog, email us. If you would like to advertise on The Blog, click here. 

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