What type of real estate includes hotels and entertainment facilities?

The correct answer is the category of real estate known as "Special Use." This classification is specifically designated for properties that serve unique purposes that are not easily categorized under other typical real estate sectors. Hotels and entertainment facilities fall into this category because they provide particular services and experiences that cater to specific market needs, such as hospitality or recreational activities.

Special Use properties often have special zoning considerations and may face different regulatory requirements compared to more conventional real estate types like residential or commercial properties. For example, hotels require zoning that accommodates transient lodging, and entertainment facilities may need specific permits for their intended use. This makes the Special Use category particularly relevant for understanding the legal and operational aspects related to these types of properties.

In contrast, residential real estate primarily encompasses places where people live, commercial real estate focuses on properties used for business purposes, and industrial real estate deals with manufacturing and distribution facilities. While hotels and entertainment facilities are indeed part of the commercial sector in terms of market engagement, they are highlighted as Special Use due to their distinctive characteristics and operational requirements.