Calculate and compare hotel investment returns across REITs, crowdfunding, tokenization, private equity, and direct purchase. Use real market data from MENA, U.S., and European markets to make informed investment decisions.
Calculating returns across 5 investment methods...
Enter your investment amount ($10K-$10M+), choose your timeline (1-10 years), select hotel type (Luxury, Mid-scale, Economy), and pick your preferred geographic region (MENA, U.S., Europe, Asia).
The calculator compares 5 investment methods: Hotel REITs (public market), Crowdfunding platforms (EquityRoots, Vesterr), Tokenization (Investay), Private Equity Funds, and Direct Purchase.
Each method shows total return, annual yield, liquidity profile, minimum investment requirement, and risk level. Higher returns often come with lower liquidity or higher minimums.
Save your calculation for later reference, download a detailed PDF report, or proceed directly to the winning investment method (e.g., Investay tokenization platform).
Our calculator uses real market data from 2024-2026 performance across multiple investment platforms and markets. Here's how we calculate returns for each method:
Data Sources: Pebblebrook Hotel Trust (PEB), Summit Hotel Properties (INN), RLJ Lodging Trust (RLJ), Apple Hospitality REIT (APLE)
Return Calculation: Average dividend yield (3.0-4.5%) + share price appreciation (0.5-2.0% annually) = 3.5-6.5% total return
Location Adjustments: U.S.-focused REITs benchmark; MENA/Europe adjusted for regional REIT performance
Risk Factors: Public market volatility, sector-wide downturns, interest rate sensitivity
Data Sources: EquityRoots (average 8-12% projected returns), Vesterr (7-10% historical), CrowdStreet hotel deals (9-13%)
Return Calculation: Weighted average of platform-reported IRR projections, adjusted for 70% success rate and 2-3% annual fees
Location Adjustments: U.S. gateway cities baseline; international deals add 1-2% risk premium
Risk Factors: Illiquidity (5-10 year lockup), project-specific risk, platform default risk
Data Sources: Investay platform Dubai/Abu Dhabi luxury hotel performance (2024-2026), VARA-regulated token performance
Return Calculation: Rental yields (6-8%) + capital appreciation (7-12%) - platform fees (1.5%) = 11.5-18.5% gross, 9-16% net effective
Location Adjustments: MENA markets (Dubai, Abu Dhabi) show highest returns; U.S./Europe adjusted down 2-4%
Risk Factors: Regulatory evolution, technology adoption, secondary market liquidity depth
Data Sources: Hospitality-focused PE funds (Blackstone Real Estate, Brookfield, Starwood Capital), average hotel fund performance
Return Calculation: Gross IRR (12-18%) - management fees (2%) - carried interest (20% of profits above hurdle) = 8-12% net to LPs
Location Adjustments: Global diversification standard; regional funds show +/- 1-2% variance
Risk Factors: High minimum ($1M+), long lockup (7-10 years), manager selection risk, fee drag
Data Sources: Hotel transaction comps (CoStar, JLL Hotels), STR market data, operational performance benchmarks
Return Calculation: NOI yield (5-10%) + value appreciation (3-7%) - operating costs - debt service = 6-15% unlevered, 12-25% leveraged
Location Adjustments: Market-specific cap rates: MENA (6-8%), U.S. gateway (7-9%), secondary markets (8-11%)
Risk Factors: Capital intensity ($5M-$50M+), operational complexity, single-asset concentration, illiquidity (12-24 month sale)
Understanding the drivers of return differences helps you make informed decisions based on your investment goals, risk tolerance, and liquidity needs.
More liquid = lower returns. Hotel REITs trade daily on stock exchanges, resulting in 3.5-6.5% returns. Crowdfunding locks capital for 5-10 years, enabling 8-12% projected returns. Tokenization offers weekly liquidity with 9-16% returns by balancing liquidity and yield.
Fees reduce net returns. Private equity funds charge 2% annual management fees + 20% carried interest, reducing 15% gross IRR to 10% net. Crowdfunding platforms charge 2-5% upfront + 1-2% annual, eroding 10% gross to 7-8% net. Tokenization (Investay) uses blockchain automation to reduce fees to 1.5%, preserving more investor returns.
Location drives returns. MENA markets (Dubai, Abu Dhabi) deliver 15-18% returns due to Vision 2030 tourism boom, 95%+ occupancy, and tax-free gains. U.S. gateway cities show 10-13% returns with mature markets. European markets offer 8-11% with lower growth but stable demand.
REITs diversify = lower returns but lower risk. Hotel REITs own 50-200+ properties across markets, reducing single-property risk but also limiting upside (3.5-6.5% returns). Crowdfunding/tokenization focus on 1-10 properties, increasing concentration risk and return potential (8-16% returns). Direct purchase = 100% single-asset risk with highest return potential (12-25% leveraged).
Luxury = higher returns. Luxury hotels (4-5 star) in prime locations show 12-18% returns with $400+ ADR and 85%+ occupancy. Mid-scale (3 star) delivers 8-12% with $200-300 ADR. Economy (2 star) offers 6-10% with $100-200 ADR. Investay focuses exclusively on luxury MENA hotels to maximize investor returns.
Sarah, a 42-year-old tech executive, invested $50K in hotel opportunities in January 2023. Here's how her returns compared across three methods after 3 years:
Sarah enjoyed daily liquidity and quarterly dividends, but returns underperformed other methods. Stock price volatility caused stress during market downturns (2023 Q1 down 12%).
Sarah receives quarterly distributions but cannot access her $50K principal until property sale (projected 2030). No secondary market exists. Returns beat REITs but capital is locked.
Sarah sold 60% of tokens in Year 2 (family emergency) via Investay secondary market with 5% discount, recovering $38,400 while keeping $25,600 invested. Total flexibility + superior returns. Dubai market outperformed U.S.
"The REIT gave me peace of mind with daily liquidity, but returns were disappointing. EquityRoots had better yields, but when I needed to access capital in Year 2 for a family emergency, I was completely locked in. Investay tokenization delivered the best of both worlds: highest returns (8.6% vs 6.0% vs 4.3%) AND the ability to sell tokens when I needed liquidity. The Dubai market performance exceeded all expectations. I've now moved 80% of my real estate allocation to tokenized MENA hotels."
Investay's MENA luxury hotel tokenization platform offers accredited investors access to Dubai and Abu Dhabi properties with weekly liquidity and 15-18% target returns.
Start Your Investay ApplicationThe calculator uses real market data from 2024-2026 performance across hotel REITs (Pebblebrook, Summit, RLJ), crowdfunding platforms (EquityRoots, Vesterr), and tokenization platforms (Investay). Returns are based on:
Disclaimer: Past performance does not guarantee future results. Actual returns will vary based on property selection, market timing, economic conditions, and investor-specific circumstances. Use this calculator as a comparison tool, not a guarantee of returns.
No, all returns shown are pre-tax. Tax treatment varies significantly by investment method and jurisdiction:
Recommendation: Consult with a tax advisor familiar with real estate investment taxation and international holdings. UAE-based tokenization (Investay) offers significant tax advantages for qualifying investors.
Yes. The calculator allows you to adjust four primary inputs:
Advanced Settings (Coming Soon): We're adding the ability to customize return assumptions, risk tolerance, liquidity preferences, and fee structures for personalized scenario analysis. Join our waitlist to get early access.
Tokenization (Investay) shows 9-16% returns vs. REITs' 3.5-6.5% returns due to four key factors:
Trade-Off: REITs offer instant daily liquidity via stock exchanges, while tokenization provides weekly secondary market trading. Higher returns compensate for slightly reduced liquidity.
Liquidity varies dramatically across investment methods:
Investay Advantage: Weekly liquidity provides flexibility without sacrificing returns. Investors can exit via secondary market or issuer buyback program with 3-7% discount to NAV, compared to crowdfunding's zero exit options.
If tokenization won in your calculator scenario, explore Investay's MENA luxury hotel opportunities with weekly liquidity and 15-18% target returns.
For accredited investors only. Calculator results are illustrative and do not guarantee future performance. All investments involve risk, including possible loss of principal. Please read the offering documents carefully before investing.