The decision to buy a second hotel is a different kind of decision than the first one. The first is about capability: can you operate a hotel? The second is about system: can you build something that scales? Most of the risk in second-property acquisition is not in operations — it is in the revenue assumptions underlying the purchase price and the pro forma. Here is the diligence checklist we work through with every buyer considering their second property. Revenue Diligence, Not Just Financial Audit A financial audit tells you what happened. Revenue diligence tells you why, and whether it is repeatable under your ownership. For a second acquisition, you need both — and the revenue diligence is almost always the more complex of the two. 1. STR Report Analysis Request STR reports (or CoStar hospitality reports) for the subject property covering at least 36 months. Look for: RevPAR Index trend (is the property gaining or losing share?), occupancy vs. ADR composition (is RevPAR growth being driven by occupancy compression or real rate growth?), and seasonality patterns (are there structural demand gaps that the seller's highlights are papering over?). 2. OTA Ranking History A property's position on Booking.com and Expedia is a leading indicator of its revenue trajectory. A property that has been declining in OTA ranking for 18 months is more likely to continue declining under new ownership unless you have a specific plan to reverse the trend. Ask for screenshots or export any ranking history the seller has. If they don't have it, pull it yourself using third-party tools before closing. 3. Review Score Trajectory