How one investor is turning college tailgaters into hotel owners

College grads always come back: Long after tossing the cap and gown, they return for reunions, football games, and a nostalgic beer or two. Gary Brandeis—a self-professed “crazy, Kool-Aid-drinking rah-rah Penn State” alum—has found a way to turn those repeat visits into a solid real estate investment strategy as the owner of Scholar Hotels.

Q: What makes hotels in college towns a smart investment? “The biggest advantage is reliable demand. Families visit students, reunions bring alumni, and prospective students tour campus. University markets are not just places where students spend four years; they’re places people return to for decades. I met my best friends to this day at Penn State, and almost 40 years after I graduated, they are still my best friends. So I’m back there all the time. And since college events are planned well in advance, we also know when we’ll be busy and can adjust our rates accordingly. That consistency is unique in the hospitality world.”

Q: How many hotels do you own, and do you plan to expand? “We have six hotels in State College, PA, around Penn State. We also have four other hotels elsewhere and two more under development. If we’re successful, I’d like to expand to other college towns, focusing on large universities in more remote areas where thousands of students eat, drink, and study together because there’s nowhere else to go. That’s what makes the emotional connection so strong, and what we’re turning into an investment.”

Q: What’s the investment you’re offering? “Scholar Hospitality Holdings is an SEC-qualified investment for non-accredited investors; there’s a $5,000 minimum with anticipated annual dividends of 4% to 6% returns. We’re trying to connect two parts of the brain: the financial part that says this may be a good investment and the emotional connection people have to their alma mater. We’re trying to raise $75 million by the end of the year. The investment also comes with VIP benefits—early check-in, suite upgrades, bar discounts—so it’s a cross between a hotel rewards program and a real estate investment.”

Q: Any advice for others on investing in college towns? “College towns are similar to beach resorts in that guests are willing to pay more to be near campus—think ‘campus-front’ rather than ‘beachfront.’ These markets also require a deep understanding of demand patterns. Major weekends can create incredible activity, but owners need to understand how to build a sustainable business year-round. Don’t just evaluate the property; evaluate the specific ecosystem around it. The strongest opportunities are tied to communities where people already have a long-term connection.”