Buying a distressed property, refurbishing it with new hotel furniture and interior decoration, and then selling it on may currently be among the best ways to make money in the hospitality investment market.
That was one of the take-home messages from the recent Henry Stewart Finance for Hotel Investment and Development in the UK and Continental Europe conference in London, according to Mintel's Macy Marvel.
In an article on the Mintel blog following the event, he wrote: "There is more than one way to acquire ownership of a hotel property.
"Besides buying outright, it is also possible to purchase the distressed debt of property-owning entities from banks which wish to clear problem loans from their balance sheets."
This method is allowing some investors to get hotel properties at between 30% and 70% less than their market value - with many of these investors called 'vulture' funds for obvious reasons.
"Once foreclosed, the properties are refurbished and then put on the market," Mr Marvel added.
The good news is that acquiring a property at a substantial discount leaves more funds available for those refurbishments - similar to a first-time buyer opting for a 'fixer-upper' as their first home, in order to save money.
For investors, that means the opportunity to install a higher standard of hotel furniture than might otherwise have been economically viable - more leather sofas in the lounge area, or even in the rooms, for instance.
And in turn, a higher standard of interiors should mean it is possible to achieve higher room rates, and potentially higher occupancy rates too, maximising the total return on investment.
Of course, purchasing hotel furniture is a one-off expenditure, whereas the amount you can charge for your rooms on an ongoing basis contributes to your long-term income and ROI.
This is why it is sensible to purchase the best hotel furniture you can afford within your budget, rather than simply opting for the cheapest chairs and sofas you can get your hands on.
By doing so, you invest upfront in the future of your establishment - and this holds true whether you are refurbishing a foreclosed hotel, or simply adding some new furniture to a fit and healthy business.