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Are you a real estate investor or entrepreneur looking for your next big opportunity? Boutique motels are gaining serious traction in 2025—and for good reason. In this post, we break down why boutique motels are an appealing investment and how to finance your purchase, with insights from lending expert Beau Eckstein.
Why Boutique Motels Are a Hot Investment Right Now
Boutique motels—typically smaller properties with 10–30 keys—are becoming increasingly attractive to investors transitioning out of traditional short-term rentals like Airbnb or small multifamily assets. With regulatory pressure mounting in many cities, owning a licensed motel can offer a more stable and scalable business model.
According to Beau Eckstein, the appeal is clear:
“A lot of people that want to get into real estate and have gotten into hospitality through short-term rentals… they’re graduating to owning 12 keys of a motel or boutique motel.”
Here’s why boutique motels stand out:
- Less regulation than short-term rentals
- More control over operations and pricing
- High margins in tourist-heavy markets
- Opportunity for value-add improvements
- Fragmented ownership, meaning fewer institutional competitors
Boutique Motels Offer an Entry Point for Serious Investors
Unlike large flagged hotels (Marriott, Hilton, etc.), boutique motels are often owned by mom-and-pop operators. That opens the door for new investors to compete in the $500,000–$8 million range—a sweet spot for those looking to break into hospitality without corporate backing.
These deals are ideal for:
- Real estate investors seeking cash-flowing assets
- Entrepreneurs looking to run a lean operation
- Operators with experience in short-term rentals or multifamily
- Buyers interested in value-add or repositioning opportunities
How to Finance a Boutique Motel in 2025
Financing a boutique motel is very doable with the right lender and the right strategy. SBA loans—particularly the 7(a) and 504 programs—remain one of the most popular options for acquiring these kinds of assets.
SBA 7(a) Loan Features:
- Up to 90% financing available
- Can be used for acquisition, renovations, or working capital
- Great for deals under $5 million
SBA 504 Loan Features:
- Designed for owner-occupied real estate
- Fixed interest rates
- Higher loan amounts (good for larger boutique assets)
Beau Eckstein and his team specialize in matching the right loan product to the right investor. Whether you're targeting your first acquisition or looking to scale a portfolio, his expertise can help you navigate the paperwork and close faster.
Use Beau Eckstein’s Free Tools to Grow Faster
In addition to hands-on lending guidance, Beau offers a powerful (and free!) resource: the Biz Scaling Playbook. This eBook teaches you how to combine AI tools and virtual team members to scale your operations without growing overhead.
“It’s got all the tools I use, some prompts, and much more. It’s an evergreen book—we’ll continue to add to it.”
Final Thoughts
Boutique motels represent a unique opportunity for real estate investors and business owners to enter the hospitality space with manageable risk and strong upside. If you’re tired of Airbnb restrictions or multifamily bidding wars, this could be your next big move.
To learn more or get started on financing your deal, subscribe to Beau Eckstein’s YouTube channel and connect with him directly. With 20+ years of lending experience, he’s the guy to help you scale smarter and faster.