I personally find GRR on hotel suite do still make sense as they are running on daily rated rental , which will be much much higher return than Residential condo which rely on monthly rental .
Maybe i could be wrong but with simple math , a hotel suite unit at 1000psf - 500sf will cost Rm500k . The operator guaranteed an 6% return will need to generate a sales of Rm30k a year which mean the room at 50% occupying rate - the room have to sell Rm166 per night minimum . Anything he charges extra is profit . And i have just browse at agoda and none of the hotel at 4 star and above near PJ or KL is renting Rm166 or below . And all hotel (if doing well ) shall be able to hit 70% occupying rate .
However , i still agreed with Johnson on resell value . Location does matter . Operator as well .