Buying a Hotel for Sale in Florida: A Complete Investor's Guide

Ashton Coleman, Broker Associate, ONE Sotheby's International Realty | 305.978.7704 | AColeman@onesothebysrealty.com

If you're searching for a hotel for sale in Florida, the first thing worth knowing is that you're likely looking for something different than what most South Florida real estate sites show you. Condo-hotel listings, which are individual units within a hotel building sold like condominiums, dominate search results for hotel-adjacent real estate here. Buying an entire hotel as a commercial asset is a fundamentally different transaction, with different valuation methods, different financing and a different buyer profile entirely.

I work with both kinds of buyers regularly, and the confusion between the two is common enough that it's worth laying out clearly before you start looking at listings.

Hotel Purchase vs. Condo-Hotel Unit: Know Which One You Want

A condo-hotel unit purchase means you own one room or suite within a larger hotel building. I cover that structure in detail on our Fort Lauderdale condo hotels pageMore Info. You hold title to that unit and pay property taxes on it. Many buildings let you opt into a rental program when you're not using the unit, but rental and owner-use rules vary by building. It's a real estate purchase with hospitality-style amenities attached. For a full walkthrough of rental programs, owner use and financing, read my guide on how condo hotels work in FloridaMore Info.

Buying an entire hotel is a commercial real estate acquisition. You're not purchasing a unit. You're purchasing a business, a brand relationship (if the property is flagged under Marriott, Hilton or another chain) and an operating team, along with the physical building and land. The transaction, financing and due diligence process bears almost no resemblance to a residential or condo-hotel purchase.

If you're specifically looking for whole-property hotel acquisitions, that inventory typically falls under commercial real estate listings rather than residential search portals. See our Broward County commercial listingsMore Info for the kind of investment-grade properties this category includes.

Explore Condo Hotels in Fort LauderdaleMore Info

Explore Condo Hotels in MiamiMore Info

How Hotels Are Actually Valued

Unlike a condo or single-family home, a hotel's value isn't primarily about square footage or comparable sales. Three metrics drive most hotel valuations:

RevPAR (Revenue Per Available Room): the single most-watched metric in hotel investment, calculated as average daily room rate multiplied by occupancy rate. A hotel with strong RevPAR growth is worth more than one with flat or declining RevPAR, even at similar occupancy levels.

Cap rate: hotels typically trade at higher capitalization rates than other commercial real estate, reflecting the operational complexity and volatility inherent to hospitality as a business rather than a passive real estate holding. HVS reported an average national hotel cap rate of 7.7% for the second quarter of 2026 and 8.2% for the twelve months ending June 2026 (HVS U.S. Market Pulse, July 2026More Info). Rates vary by hotel type, condition and market.

Brand affiliation: a branded, flagged hotel (operating under a recognized chain) commands a different valuation than an independent boutique property, largely due to the reservation systems, loyalty program access and guest trust that come with brand affiliation. Independent hotels in strong locations can still outperform on a per-key basis in the right market.

Financing a Hotel Purchase in Florida

Financing a whole-hotel acquisition looks nothing like financing a home or even a condo-hotel unit. Conventional residential mortgages don't apply here at all. Buyers typically work with:

• Commercial real estate lenders specializing in hospitality assets, who evaluate the deal based on the property's operating performance, not just the buyer's personal creditworthiness
• SBA 504 or 7(a) loans, in cases where the buyer will operate the hotel directly and qualifies under SBA size and use requirements
• Private equity or institutional capital, common for larger transactions or portfolio acquisitions
• Seller financing, which appears more often in hotel transactions than in most other commercial real estate categories, particularly for smaller independent properties

Expect a significantly more involved due diligence process than a residential purchase. Historical operating statements (typically 3 years), franchise agreement review if branded, PIP (Property Improvement Plan) cost estimates from the brand if applicable, and a market feasibility study are standard parts of a hotel acquisition, not optional extras.

Florida's Hotel Investment Market

Florida's tourism volume, lack of a state personal income tax and steady population growth continue to make it one of the more active hotel investment markets nationally. South Florida specifically benefits from year-round demand, unlike seasonal markets in the Northeast, though that also means competition for well-located, well-performing properties is real. Fort Lauderdale and Miami-Dade County both see consistent hotel transaction activity across the full range from boutique independent properties to branded, full-service assets.

Working With a Broker on a Hotel Acquisition

A hotel purchase benefits from broker representation with commercial real estate experience. The deal structure, financing conversations and due diligence checklist are different enough from residential transactions that general real estate experience alone isn't sufficient. I help buyers explore hospitality acquisitions across Broward and Miami-Dade counties and connect them with the right financing and due diligence resources for this asset class.

Frequently Asked Questions

What's the difference between buying a hotel and buying a condo-hotel unit?

Buying a condo-hotel unit means purchasing one room or suite within a larger building, similar to a condominium purchase. Buying a hotel means acquiring the entire property as a commercial business asset, including the building, operations, and often a brand relationship.

How are hotels valued in Florida?

Primarily through RevPAR (Revenue Per Available Room), capitalization rate and brand affiliation, rather than price per square foot, as with most residential property.

What cap rate do hotels sell at?

HVS reported an average national hotel cap rate of 7.7% for the second quarter of 2026 and 8.2% for the twelve months ending June 2026. Rates vary by hotel type, condition and market, so ask for recent comparable sales in the specific submarket.

Do I need special financing to buy a hotel?

Yes. Conventional residential mortgages don't apply to whole-hotel purchases. Buyers typically use commercial hospitality lenders, SBA loans (if operator-occupied), private equity, or seller financing.

Is Florida a good market for hotel investment?

Florida's year-round tourism demand, population growth, and lack of state income tax make it an active hotel investment market nationally, with South Florida seeing consistent transaction activity across both boutique and branded properties.

If you're exploring a hotel acquisition in BrowardMore Info or Miami-Dade CountyMore Info, contact me to discuss current opportunities and the right financing path for your goals. If you're instead looking for an individual condo-hotel unit, our Fort Lauderdale condo hotels pageMore Info covers that market in detail, and my guide on how condo hotels work in FloridaMore Info explains rental programs, owner use and financing.

Contact Ashton Coleman
305.978.7704 / AColeman@onesothebysrealty.comMore Info
ONE Sotheby's International Realty