E09: Investing in Hospitality: A Valuable Addition to Your Portfolio according to Josh McCallen

When we talk about investing, most people would probably think of stocks and bonds. But what about the hotel industry? Investing in hotels can be a great way to build revenue and grow your portfolio.

In this episode of the Passive Investing Show, J and Ashley are joined by Josh McCallen. They talk about the hospitality space and why it would be a good investment. They tackle the factors you must consider and things to expect when investing in hospitality.

Here are some power takeaways from today’s conversation:

• Have the heart to serve.
• Be creative and adaptive to make sales.
• Find contractual revenues.
• Know the operator.
• Review the business plan.

Episode Highlights:

[03:48] Getting Into the Hospitality Space

After flipping hotels, Josh realized he wanted to become a hospitality investor. He invested in Renault Winery and built VIVAMEE with his wife. Their mission was to “revive the soul” and spread the gift of love through joy, humility, and ministry.

[14:41] How to Secure Sales

Sales are the solution to any economy. You must be creative and adaptive. Look for properties for which you can guarantee sales. Listen to the full episode to find out how Josh layers revenues!

[20:19] The Pros and Cons of Investing in Hospitality

Eliminate volatility by finding contractual revenue. You can do that through contracts and prepaid. Prices are affordable. Business asset ownership and real estate asset ownership are two ways to beat inflation. Hospitality has both.

[26:58] Their Upcoming Investments

They are constantly looking to scale. Their next asset category would be full-service hotels. They are also bringing multiple assets into one investment to offer diversification to investors.

Find out more about his upcoming hospitality investments and their investment model by listening to the full episode!

[36:27] Pointers For Investing in Hospitality

Know the operator. Determine if they align with your values. Look at the anchor asset and review the business plan. If you like the business plan, it’s worth going for it.

Notable Quotes from the Episode:

[14:48] “Sales are the solution to any economy.”

[33:18] “We love giving investors choices on what level they want to invest at. And we treat them with more generous preferences the more they put in.”

[35:49] “Multi-family is very much science whereas hospitality is a combination of science and art. And it really boils down to how artistic you happen to be.”

Resources Mentioned:

Renault Winery Resort

VIVAMEE Hospitality

Accountable Equity

The Passive Investing Show