How to take stock of a hotel's value?

HAVE you ever thought about what a hotel really is? Is it just somewhere we stay for a few days when we go on holiday? Or are they those big red counters that we use to represent the most valuable assets in Monopoly?

Thing is, a hotel is nothing more than an asset that is rented out to people like us on a daily basis. It might make some money from food and beverage, doing our laundry, charge guests for telephone calls and maybe even levy a fee for watching in-house movies. But its main source of revenue is room rentals.

That is something we should remember. Hotels are just income-generating property assets. And Warren Buffett has provided us with some useful insights on investing in real estate. As unlikely as it might seem, the Sage of Omaha is not averse to putting money into bricks and mortar.