Are you wondering which state is best for opening a hotel business? If YES, here are 7 best states for hotel business in 2023. Starting a business may seem very easy especially when you have the basic resources. Take a good idea, combine it with good capital (and a lot of hard work), and it can grow into something special.
Unfortunately, any idea irrespective of how excellent, can fail to reach its potential once there isn’t a market for it to thrive in. In the United States, starting and running a hotel goes beyond having an establishment with a couple of liveable rooms and charging people to check-in. It is considered a sanctuary for the tired traveler.
A successful hotel business should be a place where guests feel comfortable in and can relax when they are in their room. If you enjoy helping others and love the role of an ultimate host, you’d be the ideal person to open a hotel. The reputation of a hotel more or less depends on the satisfaction of the people that stay there.
In this social media era of online reviews, anyone can go online to say anything they want – positive and negative – about any business. The best hotels understand this fact and tend to do everything they can to make sure that nobody has a negative experience, and happy guests are so thrilled they can’t help but leave a positive review.
The USA is a big place with thousands of hospitality hot spots. The premise of any suitable hotel investment is the opportunity for high booking prices and long-term appreciation. Nonetheless, here are the best states in the United States for a hotel business.
What is the Best State for Hotel Business in 2023?
According to reports, places like Central Texas remain the 5th best place to buy or invest in the hospitality industry in the US. Over the last decade, Texas has enjoyed tremendous growth in population, job growth, and tourist numbers, making it an ideal place for hotel and rental property investment.
For tourists, Texas is a lovely place full of adventure and fun. The cities have become more metropolitan and owing to the growing number of people moving to big cities, Texas has no shortage of nightlife and activities. The best places to start a hotel business in Texas, according to Mashvisor, are:
- Round Rock
- Corpus Christi
It may have the unflattering nickname or “God’s waiting room”, but Florida is a hospitality paradise. With 320 days of sunshine and thousands of kilometers of white sandy beaches, tourists just can’t stay away from the Sunshine State.
Panama City Beach for instance, is an attractive choice for a hotel and other rental properties. It boasts 27 miles of white sandy beaches, perfect weather all year round, emerald green waters, and is an affordable beach getaway for millions of Americans and international travelers.
In 2019, Panama City Beach was ranked as one of the most profitable places in America to buy a vacation rental property, with an estimated rental income of $28,800. The city of Panama City Beach is well equipped for the spin – from beautiful nature to fun nightlife and astonishing dining. The city and its surrounding areas are some of the most popular for visitors eager for fun in the sun.
Please note that all of these factors offer an excellent opportunity for anyone looking for a lucrative place to start and run a hotel business. Other areas of Florida worth considering include Destin 30A, Kissimmee, Orlando, and Tampa Bay.
Places like the Poconos Mountains in Pennsylvania are quickly becoming one of the most popular vacation destinations in the USA. It owes it to its top vacation resorts, natural areas of beauty, massive list of fun activities, over 150 lakes, and its quaint historical American towns.
Cottages and condos are a popular choice for visitors, offering property owners an excellent opportunity for real estate investment and income. The Poconos is a family favorite, and wholesome fun is to be had at every turn. According to industry reports, Pennsylvania ranks number 3 in the US, and room booking income in this area is estimated at approximately $22,000 per year.
When you drive five hours north of New York City in the direction of Vermont, you will arrive in Killington. This is a place of incredible natural beauty, boasting of snow-capped mountains, vast lakes, winding rivers, and ancient forests. Killington is renowned as an outdoor person’s paradise, and millions flood here every year for an abundance of fresh air and the great outdoors.
Note that this makes, not just Killington, but most cities of Vermont hot areas for hotels and other hospitality opportunities. Vermont boasts of a massive amount of astonishing cabins, chalets, and big, traditional homes to be acquired at a reasonable price.
With an annual income of around $39,000, it is rated number four on Rented.com’s 2019 list of top places to buy vacation rental property. Vermont is also quite popular among skiers and snowboarders in the winter time, but it’s also a top destination in the summer. This means hotel owners have a full year of business opportunity, making Vermont a lucrative opportunity.
Truth be told, there aren’t many places quite like the Great Smoky Mountains of Tennessee. Note that some people prefer to get down to the beach, but millions also prefer a taste of the mountain life. Therefore, there are some incredible rental property deals to be acquired in this region of the state.
According to reports, the state attracts over 15.3 million visitors a year, and is without doubts one of the most beautiful locations in the US with unique opportunities for fun with hiking, outdoor adventures, and fishing. Gatlinburg, Pigeon Forge, and Sevierville are always considered some of the best areas to own a hotel. In 2019, Rented.com ranked Pigeon Ford as number 1 on its list of “Best Places to Buy,” while Gatlinburg trailed close behind with the number 2 spot!
Gatlinburg was also ranked number 1 by Evolve Vacation Rental, and number 3 for best places to buy a hotel property in 2020. Similarly, last year, CNBC named Sevierville, Tennessee, as number 1 on their list of best places to invest in the US.
According to reports, South Jersey Shore was listed as number 2, second only to the Florida Panhandle, as the ideal place to acquire rental properties. This is because Jersey Shore is a well known area for American vacationers. It is host to some unbelievable entertainment activities and a vast number of nearby beaches.
Long Beach is an outstanding highlight, with access to the best beaches, cafes, bars, restaurants, and nightlife. Note that anyone interested in nature can go on ocean adventures, including snorkeling and exploration of native marine life. Jersey Shore has a bit of everything and at a reasonable price, making it a trendy destination. Some areas worth considering include Weehawken, Bayonne, Summit, and Stone Harbor
Places like The Gulf Shores and Orange Beach areas of Alabama have over 32 miles of eye catching white sand beaches with crystal clear blue waters. And both are ideal vacation spots for travelers and avid fishermen. According to reports, the number of people trooping into these parts of Alabama has rapidly grown for the past half decade.
In 2016, that number was 25.8 million and has grown since then, breaking records. In 2018, a record number of 27.7 million tourists spent a whopping $15bn in Alabama. Also note that all those visitors need somewhere to spend the night, making the vacation rental property and hotel opportunities in the south of the state extremely lucrative. Existing property owners tend to leverage websites like VRBO, Airbnb, and TripAdvisor to make the most of these record number of tourists.
In conclusion, if you are in the market for an ideal location to invest in a hotel business, there are plenty of great opportunities out there just waiting to be snapped up. Before deciding on any specific location, make sure you do your due diligence and research everything in fine detail.