I Bought a 14-Room Hotel: What I Wasn't Prepared For
Kenny Bedwell finally has his 14-room boutique hotel in downtown New Orleans open to guests. But getting there was anything but simple.
In this episode of Cash Flow Positive, Kenny pulls back the curtain on the project and shares the challenges, mistakes, delays, and unexpected lessons that came with buying and renovating a historic hotel in the Treme district, right across from the French Quarter.
From navigating city permits and historic requirements to managing contractors, construction delays, holding costs, hotel operations, Wi-Fi infrastructure, guest safety, and the realities of running a property with staff, Kenny explains what he wasn't prepared for and what he would do differently next time.
Key Takeaways
- What it was really like buying and renovating a 14-room boutique hotel for $1.495 million and investing roughly $900,000 into the project.
- Why city permitting can become one of the biggest delays in a renovation project, particularly in historic areas.
- Why you can't completely hand off responsibility to your contractor. The person who cares most about the project is ultimately the person paying for it.
- How disconnected permitting and inspection processes created unexpected delays and additional work.
- Why you need to understand the entire approval process before construction begins, including what happens after the renovation is supposedly finished.
- The contractor lesson Kenny learned about incentives and deadlines, especially during the final stages of a large project.
- Why construction draw schedules can create an incentive problem when contractors have already received most of their payment but still have work left to finish.
- How bonuses and penalties could help keep contractors motivated and why Kenny plans to build clearer incentives into future renovation agreements.
- Why holding costs matter so much when a property isn't generating revenue yet. Kenny explains that the hotel was costing roughly $5,000 per week during the project.
- Why contracts need clear expectations, deadlines, responsibilities, and consequences before work begins.
- Why unexpected problems are inevitable during major renovations, especially when working on an old building.
- The importance of having both financial and mental preparation for construction surprises.
- Why a hotel is a completely different operational beast from a typical short-term rental.
- How a 14-room hotel can have more than 200 connected devices, making reliable Wi-Fi and connectivity critical to the guest experience and daily operation.
- Why hotel operations require much more planning and hands-on management, from staff and payroll to guest interactions and safety procedures.
- Why hotel guests and reviews create a different marketing challenge compared with operating an individual Airbnb.
- How hotel regulations can introduce requirements that STR investors may never encounter, including specific electrical and safety restrictions.
- Why anyone considering buying a hotel should study how to actually operate one, not just focus on the acquisition and potential revenue.
- The personal sacrifices involved in completing a major project, including Kenny's regular trips to New Orleans and the impact on his family and personal life.
- What Kenny learned about working with contractors, investors, partners, city officials, and local relationships.
- Why the project became a major personal growth experience, even beyond the financial and portfolio implications.
- The people who helped Kenny get the hotel across the finish line and why he credits the team rather than treating it as a solo accomplishment.
About the Host
Kenny Bedwell is the host of Cash Flow Positive and an experienced short-term rental investor. Through the podcast, Kenny shares practical insights on real estate investing, short-term rentals, market data, cash flow, and the lessons he's learned from building and operating his own portfolio.
Important Links
La Corte Hotel: Check out Kenny's 14-room boutique hotel in New Orleans.
STR Insights: Want us to find the deals for you?
Instagram: @kenny_bedwell
YouTube: Cash Flow Positive
LinkedIn: Kenneth Bedwell
Cash Flow Positive is an original podcast hosted by Kenny Bedwell.