Yes, I’m invested in a hotel in FL (one of the large chains). You have to be picky as a small investor. You’re not going to get the deals a large real estate company would. But if you invest in growing markets like TX, FL, CO, Nashville, TN, you’ve benefiting from the demographic changes. However you have to worry about how well the sponsor performs and how well a platform manages the various sponsors.
REITs are definitely a good way to go, just direct investment gives you a more specific focus and different diversification.
I’m in a few deals, but am now waiting it out to see how they really perform. One is building a multi-unit condo building in Williamsburg in Brooklyn. That one is a little more speculative.
The benefit is that you still get some of the tax benefits (K-1, passive investment gain/loss) without the hassle of managing property. But as I mentioned, most of the commercial investments all get 5 year interest only loans, and then roll over to a new loan later – so definitely interest rate sensitive.
One of the ones I considered, but didn’t invest due to limited capital and overwhelming demand was the SD Mission Valley Marriott. Which is somewhat typical – the really good deals (or the ones that appear to be) generate a lot of interest.