378. He Stopped Buying Airbnbs and Built a $20M Hotel Portfolio

Core ConceptBuy when others are scared: Michael bought post-2008 and during COVID, using fear-driven discounts to build a $20M portfolio.STRs → Hostels: Started with Airbnbs in Hawaii, then pivoted to hostels due to regulation limits and desire for a more scalable, centralized operation.Hostel strategy: Not “cheapest bed” but best social experience—design-forward common areas, events, and strong community vibe.Economics: Same-size room can earn more per night with bunks (e.g., $480 vs. $200), plus partial occupancy still produces strong revenue.Returns & risk: Targets ~20%+ IRR, 2–3x equity multiple, but with higher risk, longer holds (5–10 years), and heavier operations vs. multifamily.Big lesson: Don’t do your first hospitality deal solo—partner or get a mentor/mastermind to avoid costly mistakes.Portfolio fit: Hospitality offers a hybrid of strong cash flow + equity upside if you can execute on both real estate and the operating business.