Hotels for LPs: Cash Flow & Playbook feat. Jai Desai & Suraj Reddy

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This Episode

Hotels for passive investors: what actually matters and how it’s different from multifamily. Chris Lopez digs in with Jay Desai and Suraj Reddy on the underwriting stack (ADR, occupancy, RevPAR and RevPAR penetration), why brand fit and comp sets (STAR reports) drive the thesis, and how operations (daily pricing, sales/RFPs, third-party management aligned on expenses) move the needle. They walk through break-even occupancy math (often far lower than MF), margins, bonus depreciation via FF&E/capex, fixed-rate/community-bank capital stacks, and their “no capital calls” policy. Includes a Columbus case study and the macro outlook across business/leisure/extended-stay demand—and what Airbnbs really compete for.

Key Takeaways

• Hotels 101: ADR × occupancy = RevPAR; low RevPAR penetration in a strong comp set = value-add target
• Break-even is different: hotels can pencil at ~35–60% occupancy vs. ~70–75% in multifamily
• Operations > brand alone: daily revenue management, sales/RFPs, and expense discipline drive NOI
• STAR reports: how pros build comp sets and gauge RevPAR share before/after capex
• Depreciation edge: large year-one bonus depreciation from FF&E and renovations (consult your CPA)

Disclaimer

The content of this podcast is for informational purposes only. All host and participant opinions are their own. Investment in any asset, real estate included, involves risk. Nothing here is investment, tax, legal, or financial advice; consult qualified professionals. Past performance is not indicative of future results. This podcast may include paid advertisements or promotional materials for sponsors, funds, or offerings and should not be interpreted as a recommendation or endorsement by PassivePockets, LLC or affiliates. Conduct your own due diligence and consider your financial situation before engaging with any advertised products or services. PassivePockets, LLC disclaims all liability for any actions taken based on the information presented.