Indian investors can now own US hotel rooms through Blockchain Tokenization
The hospitality industry in the US has emerged as a lucrative investment option for Indian investors seeking diversification and high returns. As the world’s largest economy, the United States offers a wide range of investment opportunities across multiple sectors, and the hospitality industry has continued to attract significant attention. With strong economic growth, stable legal systems and technological advancements, US-based hotels present a smart move for Indian investors looking to tap into the industry’s growth potential.
Here are five compelling reasons to invest in US-based hotels:
Portfolio diversification: Investing in US-based hotels provides a diversification opportunity for Indian investors, who may have limited exposure to the US economy. Investing in a different geographic location helps reduce risk, and with the global appeal of the hospitality industry, this sector provides an ideal investment opportunity.
Strong economic growth: The US economy has grown steadily for several years, and the hotel industry has seen significant growth, especially in cities with booming economies such as New York, San Francisco and Los Angeles. This provides a stable basis for demand for hotels, and creates a strong investment opportunity. The market size, measured by revenue, for the hotel and motel industry in the United States is estimated to be $341.7 billion and is expected to grow by 17.9% in 2023. Attractive returns: Historically, US-based hotels have delivered attractive returns to investors , and Within the hotel segment, the selective service segment has performed extremely well, consistently delivering 15-20% in net margins year over year. Select-service hotels benefit from a streamlined operating model, which resulted in a 26.9% GOPPAR premium in 2020 over full-service hotels. This has helped stimulate investor activity as margins continue to tighten in the industry and many hotels continue to operate in a zero cash flow environment. Selected hotels represent a defensive real estate sector with higher and more consistent returns than other hotels. The sector has also shown more long-term stability with limited average price per key volatility over the past 20 years. Transparency aided by stable legal system: The US has a stable and transparent legal system, which provides investors with a high degree of legal protection and reduces the risk of unexpected legal problems that may arise in some other countries. Moreover, there is a high degree of transparency due to the availability of data benchmarking hotels on a number of parameters.
Technological Advances: The United States is known for being at the forefront of technological advancements in the hospitality industry, with a strong focus on innovation, convenience and personalization. Investing in US-based hotels provides an opportunity to take advantage of technological advances that can improve guest experiences and improve operational efficiency. Perhaps the most important of them all is the tokenization of real estate hotel ownership using the blockchain framework. Any person sitting anywhere in the world can now own a US hotel room, subject to meeting US KYC and AML norms.
Real estate tokenization enables Indian investors to gain exposure to the US real estate market, overcoming all traditional barriers to entry. With strong growth, technological advancements, a stable legal system and attractive returns, investing in US-based hotels is a smart move for Indian investors looking to tap into the growth potential of the hospitality industry.
The views above are the author’s own.
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