EP355 From Airbnb to Boutique Hotels Scaling Your Real Estate Investments with Rich Monroe

A Canadian Investing in the U.S. with Glen Sutherland

This podcast episode of Canadian Investing in the USA features Rich Monroe, an experienced real estate investor based in Atlanta, Georgia, who focuses on short-term rentals, Airbnbs, and boutique hotels. Over his 20-year career, Rich has worked with single-family homes, multi-family properties, and hotels. His main focus has shifted toward distressed property investments, particularly boutique hotels, due to the flexibility and value creation opportunities they provide. Key Points: Geographic Focus: Rich primarily invests in the southeastern U.S., including Atlanta, Tampa (Florida), North Georgia mountains, North Carolina, and Tennessee. Investment Strategies: Fix and flip distressed properties for short-term rentals. Rental arbitrage by leasing properties for Airbnb use. Management of short-term rentals for other investors (earning ~25% management fees). Shift to Hotels: Hotels offer flexibility since value is based on net operating income, not appraised property values. They allow for higher returns by leveraging operational efficiencies, remodeling, and licensing advantages, particularly in markets with strict Airbnb regulations. Ongoing Projects: Rich is working on a 104-room cabin resort in North Georgia that includes amenities like a wedding venue, spa, restaurant, and horseback riding. He’s also exploring distressed hotels and conversions into boutique-style accommodations. Regulatory Challenges: Short-term rental regulations in cities like Atlanta and New York have pushed Rich toward the hotel space, which has more stable licensing structures and fewer restrictions. Creating Experiences: To differentiate his properties, Rich focuses on creating unique guest experiences with amenities like pools, pickleball courts, fire pits, and organized activities such as yoga or events. Collaborative Approach: Rich emphasizes partnering with experienced professionals in the hotel space to reduce risk and streamline operations. He’s also exploring innovative strategies like hotel-to-condo conversions, offering individual investors opportunities to buy rooms. The discussion highlights the strategic advantages of hotel investments and the importance of diversifying income streams in real estate.