How a $800K Distressed Motel Became a $2.4M Revenue Machine | Michael Russell E87
Most people walk past the ugly deal. That's exactly why the ugly deal is where the money is. In this episode, Michael Russell sits in the hot seat as a guest on the Lights On Podcast, sharing the unfiltered story behind how he acquired a rundown one-star motel in Maui during COVID and repositioned it into the number one small hostel in North America, growing annual revenue from $500K to $2.4 million in just a few years. Co-founder of Howzit Hostels and Malama Capital, Michael has built a hosp...
Most people walk past the ugly deal. That's exactly why the ugly deal is where the money is.
In this episode, Michael Russell sits in the hot seat as a guest on the Lights On Podcast, sharing the unfiltered story behind how he acquired a rundown one-star motel in Maui during COVID and repositioned it into the number one small hostel in North America, growing annual revenue from $500K to $2.4 million in just a few years.
Co-founder of Howzit Hostels and Malama Capital, Michael has built a hospitality portfolio by finding value where others aren't looking, starting with single-family homes in the post-recession market, scaling through short-term rentals, and eventually buying a motel no one else wanted.
In this episode, you'll discover:
- Why Michael paid $800K for a property most investors would have ignored, and how seller financing made it possible
- The budgeting mistake that nearly destroyed their returns (and why going 40-50% over budget is more common than anyone admits)
- How the Lahaina fires wiped out short-term rental income overnight and what it taught him about cash reserves the hard way
- The real math on OTAs vs. direct bookings that most independent operators get wrong
- Why Michael started The Hotel Investor Playbook with zero interest in monetizing it, and what that means for the conversations he's willing to have
If you're serious about finding your first hotel deal or scaling what you've already built, this episode will save you from some expensive assumptions. The unglamorous path is usually the most profitable one.
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