Buena Park Hotel & Motel Property for Sale

Buena Park is located in the northwest portion of California’s Orange County. It is also just to the northwest of the county seat, which is the city of Santa Ana. According to the 2010 U.S. Census, some 80,530 people lived here, making it a relatively small city. Interestingly, although it is part of Orange County, it is located within the Los Angeles metropolitan area. The city of Buena Park attracts a lot of tourists, particularly because Knott’s Berry Farm, as well as a number of other tourist attractions, are found there. Knott’s Berry Farm is also the city’s biggest employer, with some 5,071 employees. Other top companies in the area are Prologis, Leach, the Access Business Group, PepsiCo, J.C. Penney, ADP, Yamaha, the RIA Financial Services, and the City of Buena Park. The city was previously an agricultural center when it was incorporated on January 27, 1953. Its economy then was focused on citrus products, wine and dairy products. Today, however, Buena Park is a residential community, as well as a commercial hub.

Interestingly, it also has a bit of a grim history. In 1992, Stuart Tay was murdered there, which was then a high profile case. And in 2009, Jasmine Fiore’s body was found in a dumpster outside of Franklin Street, stuffed inside a suitcase. Fiore was a famous reality TV star and swimsuit model. It was alleged that she was murdered by her husband, who later committed suicide. She was identified by means of the serial numbers on her breast implants.

Buena Park Hotel & Motel Property for Sale & Lease – Should You Buy or Lease?

If you are interested in hotel & motel property, you can either buy or lease. There are pros and cons to both leasing and buying hotels and motels. As an investment, whether you purchase or lease the property, and whether you look into an entire hotel or motel or a single room only, the advantages include:

  • A low requirement for capital investment (if you purchase a single room), while ensuring a high return, particularly if you invest in a hotel room in Orange County, where demand is very high.
  • The option of having a fixed rate of return, which is for both buyers and lessees, without having to take on any of the risks of hotel management. This means that if there are customer complaints or breakages, the responsibility lies with the hotel manager.
  • Having a steady income, particularly in Orange County, with high average daily rates.
  • Being able to use the hotel or room for your own personal use as well, although this means that you will not earn an income at that time.

Essentially, hotel & motel properties offer investors a profitable, low risk method of having a diverse investment portfolio.

However, there are also some disadvantages in investing in hotel & motel property:

  • Collecting returns can be incredibly complex in terms of jurisdiction and taxes.
  • You don’t have much influence on the marketing policy of the hotel, or of its management strategy, unless you purchase the entire operation.
  • It requires you to have a good foundation of knowledge in the hotel industry to increase the chances of your business in succeeding.
  • There is some seasonality involved in hotels and motels, which means the monthly income can fluctuate substantially.
  • Competition, particularyly in making a single room purchase, is incredibly high, including with foreign investors vying for any room that becomes available.

Buena Park Hotel & Motel Property for Sale – Trends and Statistics

Buena Park is home to a large number of established hotels and motels. Due to its proximity to the Knott’s Berry Farm and other attractions, it is a very popular area with tourists. However, there are currently no hotels for sale in the area. It is believed that this is due to the fact that there have been very few new developments since 2015, and those that have been developed are already established, and all rooms have been purchased.

Buena Park Hotel & Motel Property for Lease – Trends and Statistics

Similarly, there are currently no hotel and motel properties for lease in Buena Park. Again, this is due to the market being fully established, and operating at good capacity.

As you can see, the investment market for hotel and motel properties in Buena Park, CA, is not very positive at the present time. That said, with a significant boost in the economy of Orange County as a whole, there is a chance that new developments will take place. As an investor, keeping your eye on movements within the commercial real estate market as a whole should always be a top priority. What the lack of available properties also means, is that investing in hotel and motel properties in Buena Park is likely to be very successful. As such, if a property does become available, be that for lease or for purchase, you should take the opportunity to grab it.