Is Blackstone the McDonald’s of the private-equity world?
Recently, it announced the $41 billion purchase of the Hilton chain of hotels. With this purchase, Blackstone now owns 700,000 hotel rooms across the globe.
Sounds suprisingly similar to McDonald’s modus operandi. McDonald’s owns prime location in most major cities on the planet. It rents the properties out to its franchises so basically its in the real estate business!
If Blackstone continues acquiring real estate it’ll probably end up with a similar model to Mickey D’s. Buying prime location with a business that pays the mortgage!
If you found this post helpful, consider donating to my coffee fund!![[del.icio.us]](http://images.del.icio.us/static/img/delicious.small.gif){kind=small}
- How Do Your Investments Stack Up Against Schiller If any of you remember Robert Schiller, of Irrational Exuberance fame, he thought tech stocks were overvalued and now he thinks real estate is over valued too.According to an interview, he stated that between 1890 and 1990 the after-inflation return for real estate was ZERO!This is not really surprising because......
- Living off dividends [or how to invest in Real Estate for cashflow] While surfing onlne, I came across this blog post: Real Estate as an asset class. Basically this guy wants to be able to live off his dividends at some point and his blog is devoted to that. He's wondering how real estate fits in. He invests in REITS but isn't......
- Are Stocks A Better Investment Than Real Estate? According to this article in Money Magazine, stocks are a better investment, based on a study taking in account the years 1978 to 2004.While there are some valid points favoring stocks over real estate, I think it was a one sided arguement.Why choose a period where the stock market did......
Related Websites
- Rental Demand Rising: Balance Returning to Real Estate? One of my most important metrics for jumping back into the real estate investing game is on the rise: apartment demand is finally showing signs of life. With millions of families switching from being homeowners to renters, apartment-building values have soared. That isn’t good for renters, who enjoyed falling rents,......
- Pay Extra for Turnkey Real Estate or Save with Fixer Upper? For some time now, I've been considering becoming a real estate investor (>1 property) once again. Even though real estate prices haven't found their absolute bottom yet (my non-professional opinion only), I'm thinking that 2010 might be a decent time to test the waters, do some bottom fishing, and......
- The Mortgage Crisis and Investments in Real Estate According to regional and state real estate analysts, the factors which previously fueled the housing boom of the last few years are easy to explain. The factors that fueled this boom in the real instate industry ranged significantly, including: - Interest rates that were historically low. - Flight-Risk Safety Investments......
[All content is copyright of Living Off Dividends & Passive Income]
Leave a Reply