Between a hotel and a residential building, which is more profitable to own.

[Niyi Briggs]

In real estate, you can own buildings that can be used for different purposes. They can be used as schools, bar, hotels etc.

Imagine you have a plot in a fairly urban location, what would you use it for between a hotel and a residential building?

Which one do you think would bring more revenue to you.

 

[eldavis]

A hotel would be a lot more profiting. With hotels you can also create space for an event center where people can hire for various events like wedding, business seminars and the likes, you could also have a restaurant inside as well.

 

[Niyi Briggs]

@eldavis that is very true. I also think a hotel would generate more revenue. I think it is also more difficult to set up than a residential building.

 

[eldavis]

@eldavis that is very true. I also think a hotel would generate more revenue. I think it is also more difficult to set up than a residential building.

Well i do not know if its more difficult though but i do know it would definitely cost more, cause of the many rooms you would have to furnish and of cause the extra features like a bar, event center, gyms and the rest.

 

[Shavkat]

They are both fine to gain profit. As long as, they were owned by the owners.

 

[Suba]

To build a hotel you need large capital and permits as a business entity. Personally I prefer residential building because it is a private business with a lower tax rate.