What Should I Know Before Buying a Hotel or Multi-Unit in St. Pete?
Thinking about buying a hotel, motel, or multi-family property in St. Petersburg, Florida? You’re not alone. As tourism, remote work, and population growth continue to rise, more investors are exploring larger cash-flow assets like boutique hotels, small inns, and multi-unit buildings in the heart of St. Pete.
But before you jump in, there are several critical things to know—from zoning and licensing to income potential and red tape.
Let’s break it down.
🏨 1. Zoning & Permitted Use Matter—A Lot
St. Pete is known for its artsy charm, but zoning laws are strict, especially when it comes to operating transient lodging (under 30-day stays).
✅ Some zones allow for short-term commercial lodging—especially in the downtown core, near Beach Drive, or in areas already designated for tourism.
🚫 Others are strictly residential, and even owning a multi-unit doesn’t mean you can legally rent nightly or weekly.
Before buying any multi-unit or hotel property, verify:
Zoning and land use codes
Whether short-term lodging is permitted by right or requires a special exception
If the property is grandfathered in as a legal non-conforming use
Pro tip: Work with a local commercial real estate agent or zoning consultant to avoid expensive surprises.
💸 2. Financing a Hotel or Multi-Unit Is Different from Buying a Home
Lenders treat hotels and large multi-family assets as commercial real estate, meaning:
You’ll likely need 20–35% down
They’ll evaluate the income the property produces, not just your personal credit
You may need to submit a business plan, P&L, and occupancy history
If you're buying a small motel, boutique inn, or 4–15 unit apartment, expect a more detailed underwriting process than your average Airbnb loan.
🧾 3. Licensing, Permits & Taxes Can Be Complex
If you plan to operate a hotel or short-term rental business, you’ll need:
A St. Petersburg business license
A Florida DBPR lodging license
Sales and tourist development tax accounts with the state and county
Fire inspection approval, ADA compliance, and possibly parking studies
📌 Hotels and motels may also have to meet Department of Health requirements, bed bug mitigation standards, and more—depending on the building's age, use, and occupancy levels.
📊 4. Evaluate Real Income Potential, Not Just Occupancy
A multi-unit or hotel might look like a gold mine on Airbnb or Booking.com, but real success depends on:
Net operating income (NOI) after management, maintenance, taxes, and utilities
Occupancy rate trends, not just peak season demand
Online reviews and brand reputation, if it's an existing hotel
Ask for the last 12–24 months of financials, look for hidden costs (roof? plumbing?), and be cautious with “pro forma” projections that assume 90% occupancy at premium rates.
🌴 5. Location Still Reigns Supreme
In St. Pete, the best-performing hotel and multi-family assets tend to be near:
Beach Drive and Downtown St. Pete
Grand Central District
The Edge District
Near the water in places like Pass-a-Grille or Treasure Island (zoning permitting)
These areas offer walkability, nightlife, and dining—key features for tourists and tenants alike.
🧠 6. Have an Exit Strategy
Ask yourself:
Will you hold long-term for cash flow?
Do you plan to reposition or rebrand the property?
Could you convert short-term units to long-term rentals if regulations change?
Smart investing in St. Pete’s hotel and multi-unit market means knowing your Plan A—and having a Plan B.
Bottom Line: Buying a Hotel or Multi-Unit in St. Pete Can Be Profitable—If You Do It Right
Whether you're eyeing a boutique inn in Pass-a-Grille or a 6-plex in the Grand Central District, the key to success is due diligence, smart financing, and local expertise.
Ready to explore hotel or multi-unit opportunities in St. Petersburg?
I've helped clients buy and sell everything from Airbnb portfolios to small hotels. Let’s talk about your investment goals and how to navigate this niche market with confidence.
