A speaker explains why hotels may be preferable to short-term rentals when considering resale: appraisals often ignore furniture and rental income, so the income-generating setup of a short-term rental (furniture, cleaning crew, management) may not be reflected in appraised value, whereas commercial real estate (like hotels) typically has income reflected in appraisals.
Why consider a hotel over a short term rental? The biggest reason was because I was reselling some of my short term rentals in 2021 and I was continuously running into the issue where both me and the buyer agreed on the price because it was making quite a bit of money. But because furniture does not count in appraisal, income does not count in an appraisal. The fact that we have a locked in cleaning crew and management system that's seamless does not lock in appraisal apprais. It may not reflect what the property is worth. So in commercial real estate, what you make is going to reflect in the appraised value of the properties.
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