Why is the investment in hotels but houses so expensive?

Because the hotel needs a lot of capital investment because of its many materials.

To a certain extent, unless the property right building is owned by itself, the hotel earns the difference between revenue and rent, and the rent greatly affects how much investors can earn. It takes a long time to prepare for the renovation of the hotel. During this period, there is no income but rent has to be paid, so the renovation cycle must be strictly controlled. On the one hand, the extension of the construction period will consume more manpower, on the other hand, one day's delay will cost an extra day's rent. If you want to reduce the rent cost, you can also reduce the rent increase rate by extending the rent-free period, which depends on the negotiation result between the investor and the landlord. Generally, the rent-free period is six months, which is very good.

Generally speaking, hotel investment is an inevitable choice after success. Hotel investment is characterized by high investment threshold and long return period, which is not suitable for young people to start businesses with passion. Except for mom-and-pop stores, because mom-and-pop stores earn neither return on investment nor investment behavior, but a high labor cost.