A limited-service hotel (LSH) is a hotel without restaurant and banquet facilities, which are part of the defining characteristics of a full-service hotel (FSH).The LSH’s market position is based on the recognition that, for some travelers, the key requirement is a satisfactory room but few of the other amenities.

Lower investment outlay and operating cost, a feature shared by all LSHs, lead to a more stable investment product versus the FSH, and LSHs can deliver an on-par to slightly better risk-adjusted return than other commercial real estate classes.

Admiral White Paper: A Case for Limited Service Hotel Investment

Admiral Investment has released a white paper entitled "A Case for Limited Service Hotel Investment" today. This is the first instalment of a series of articles and this white paper analyses limited service hotels as an investment alternative for investors. 

Limited service hotels focus on a satisfactory room experience but offer less amenities. This serves a wide clientele, from causal travellers to small-to-medium-enterprise employees. Industry data, including the growth of the low cost carrier market, suggest that this clientele has grown in the last two decades and is expected to grow by another 50% in the next five years. Investors should consider this asset class because it is seen as a lower risk alternative to full service hotels. While limited service hotels can serve as a constituent investment in a core or core-plus portfolio, limited service hotels also offer several strategies for value add investments. 

More information about this white paper series is available at http://investlsh.blogspot.com/ 

Attached please find the white paper for your reference: