Commercial Real Estate (CRE) Classifications and Key Asset Classes continued.
In this section we will define the Healthcare Assets and the Hotel part of the Leisure Assets.
- Healthcare – This asset class includes: Medical Centers, Hospitals, and Emergency Care facilities.
- Leisure – This asset class includes: Hotels, Restaurants, Self-Storage, and Special Purpose and other nonresidential properties.
The Healthcare asset class includes 3 main types:
- Medical Centers – Although the term refers to any group of health-care providers, including local clinics and individual hospital buildings, the term is more properly used to refer to larger facilities or groupings of facilities that include a full range of health services, medical education and medical research.
- Examples include the Mayo Clinic, the Cleveland Clinic and Orlando Regional Medical Center
- Hospitals are institutions that provide medical and surgical treatment and nursing care for sick or injured people. They usually have specialized medical and nursing staff and medical equipment. The most common type of hospital is the general hospital, which typically has an emergency department to treat urgent health problems, ranging from accident victims to heart attacks.
- Examples include Nemours, Dr. P. Phillips Hospital, Arnold and Winnie Palmer Hospitals, etc.
- Emergency Care facilities, also known as Urgent Care centers, are similar to walk-in clinics, but mainly treat injuries or illnesses requiring immediate care, although not serious enough to require an ER visit. Urgent care centers differ from emergency departments and convenient care clinics by the scope of conditions treated and available facilities on-site.
- Examples include Florida Urgent Care, Centra Care, and Affordable Care Clinics
Hotels are classified into categories according to their Facilities, Services and Amenities which they provide. Another distinction is their “Flag” or Operating Brand.
There are 4 main types of hotels:
- Full-Service Hotels – Offer quality service and provide lavish food and beverage services suitable for both guests and groups. On-site high-end restaurants, lounges, and group meeting spaces with elaborate banquet rooms are the cornerstones of the Full-Service Hotel, along with selective amenities such as spas, doormen, valet parking, extended room service, concierge services, upscale swimming pools, health clubs, children’s activities and boutiques.
- Examples of Full-Service flags include the Hyatt, Marriott, Renaissance and Crowne Plaza
- Limited-Service Hotels – Are known for simple amenities and complimentary continental breakfast, however, these services and amenities have expanded over recent years, and in today’s market a limited-service hotel’s range of amenities might include a business center, a fitness room, a guest laundry facility, a market pantry, an indoor and/or outdoor pool and whirlpool, and small meeting rooms.
- Examples of Limited-Service flags include Fairfield Inn, Hampton Inn, Holiday Inn Express and La Quinta
- Budget-Service Hotels – Provide “no-frills” rooms at modest prices, and offer one or two guest services or amenities, but they tend to focus on providing the basic necessities for a low rate.
- Examples of Budget-Service Hotel flags include Red Roof Inn, Best Western, Motel 6 and Super 8
- Extended Stay Hotels are designed for people staying a week or more. They are aimed at business travelers on prolonged assignments, individuals or families who are relocating or on an extended holiday, and others in need of temporary housing. They offer discounts for stays of five days or greater and provide home-like features that are usually unavailable at standard hotels, such as suites with separate areas for working and relaxing, self-serve laundry facilities, and a fully-equipped kitchen, as well as free continental breakfast, free high-speed Internet, an on-site marketplace and regular housekeeping.
- Examples of Extended Stay Hotel flags include Extended Stay America, Homewood Suites by Hilton, Staybridge Suites and MainStay Suites
We will continue the Leisure Asset class and their Classifications in our next installment of the Beginner’s Guide to Commercial Real Estate (CRE) – Part 5.