One of the sentences we hear most often in hotel investment: "Location matters so much." Hard to disagree.
But the real issue is defining what a good location actually is. Being in a touristic area, near the center, or having a sea view doesn't by itself mean a location makes a good hotel investment.
To know whether a location is truly good, you need to weigh it together with the concept you're planning, the target guest, and the investment model.
For me, the right location is one the right guest can reach at the right time for the right experience, and where the investment model can work economically.
That's why, when looking for a property for a hotel investment, one of the first things I ask isn't just "Is this a nice place?" It's "Can the hotel I want to build here actually work?"
1. Define the guest before the area
Starting location analysis, most investors look at areas first. Alaçatı? Çeşme? Bodrum? Istanbul? Antalya?
But I think there's a question that needs answering before that: who will your hotel's guest be? Because even within the same area, different locations can mean very different things to different customer groups.
These guests won't expect the same things from a location. Being right in the center is a big advantage for one guest, while a quiet, more isolated spot may be far more valuable for another.
So: target guest first, then location.
2. A "central" location isn't always the best location
"Central" is a strong word in real estate. But on its own it's not enough for a hotel investment.
Being near the center can bring walkability, access to restaurants, shopping, nightlife, and closeness to tourist spots.
But it can also bring noise, parking problems, difficult vehicle access, congestion, and higher real estate cost.
So instead of "Is it central?" it's more accurate to ask: "Is it a reachable and meaningful location for my target guest?"
3. Accessibility matters more than you'd think
A hotel being in a beautiful place doesn't mean guests can reach it comfortably.
Especially for a first-time visitor, details like getting there from the airport, connections to main roads, access by car, parking, and walkable nearby spots can directly shape the stay experience.
Sometimes an access issue that looks minor to the investor can be a major factor in a guest's booking decision.
So it's not enough to look at a location on a map from above. You need to actually experience how a guest would get there.
4. Try to understand tourism demand in the area
An area being popular today doesn't mean it'll work the same way in the future. So don't judge the area you're considering only by how it looks now.
All of this is part of the investment decision. You may use a hotel building for years to come. So you're trying to buy tomorrow's location, not just today's.
5. See your competitors on a map
Rather than looking only at your own property while researching location, it's very useful to mark nearby hotels on a map too.
Study these. Then ask yourself: where does my hotel sit on this map?
If there are many properties that are nearly identical nearby, what will your point of differentiation be? Conversely, if you notice a need in the area that isn't being met, that could be an opportunity for you.
So competitor analysis should be done not just to know your competitors, but to test your own investment idea.
6. Don't consider the property separately from the location
Two different properties in the same neighborhood can produce entirely different outcomes for a hotel investment.
The other might have none of these, despite being in the same location. So it's wrong to think "If the location is good, the property is good."
The real evaluation should combine area + parcel + structure + usage conditions + investment model.
7. Check zoning and legal status right away
This point matters especially. You might love a property and think it's ideal for a hotel.
But before the investment decision, you need to check whether the property's zoning, usage, and existing structure are compatible with the investment you're planning.
One of the biggest mistakes an investor can make here is deciding to buy first and doing the technical and legal checks later. My approach would be the opposite: check first, decide second.
Fixing a problem on a property you've already bought can be far more costly than fixing a problem you noticed before buying.
8. Weigh the cost of the location too
A location being very good doesn't mean every investment there is good. Sometimes the purchase cost of a property in an excellent location is so high that it hurts the investment's return.
So at the end of location analysis, you need to ask two questions together: "Is this a good location?" and "Does it make sense to pay this price for this location?"
The second is at least as important as the first. As an investor you're not just looking for a good place — you're looking for an opportunity that's priced right economically.
9. Always factor in the season
Especially in coastal regions, season is critical when evaluating location. An area can be extremely busy in summer. But what happens in winter?
The answers directly affect feasibility. So it's far healthier to evaluate a location across different periods of the year, not just by seeing it in July.
10. Try living the location before buying it
I think this is one of the most useful things investors can do. If you're studying an area for investment purposes, don't decide after a brief visit.
See the experience a guest would have with your own eyes as much as possible. A location that looks great on a map may not create the same effect in real life.
There's no single recipe for the right location
In hotel investment we sometimes try to find "the best location." I don't think such a place exists. There's the right location for your investment.
What's right for a city hotel may not be right for a boutique holiday hotel. A feature that's an advantage for a family hotel might be pointless for a hotel aimed at couples.
So location choice shouldn't be considered independent of the property — it should be thought of as part of the investment model.
Questions I'd ask myself when choosing a location
The clearer the answers to these questions, the more solid ground the investment decision stands on.
Conclusion: A good location is more than a nice place
Location really matters a great deal in hotel investment. But you shouldn't pick the right location simply because it's central, touristic, close to the sea, or popular.
The right location makes sense once it's evaluated together with your target guest, your concept, your investment cost, your expected revenue, and your operating model.
For me, the most important quality of a good location is this: it should support the hotel not just looking beautiful today, but being able to run for years to come. And I think that's exactly one of the most important questions at the very start of a hotel investment.
Looking for more detail?
This article is only a summary of the location and investment-evaluation approach I cover in the Hotel Investment Guide — Volume I.
In the guide I go into more detail on how location should be evaluated, starting from the earliest stages of the investment decision.
Volume I is complete. Publication preparations are underway.