Hotel Room Investment
Why Invest in Hotels?
Investing in hotel rooms is an excellent alternative to the traditional buy-to-let investment, allowing property investors to invest in the commercial sector at an affordable and accessible level, providing diversification for their property portfolio.
Hotel rooms typically are leasehold tenure and are similar to a residential apartment purchase therefore investors have the security of ownership of the property, as they would do from a traditional buy-to-let investment property.
Hotel rooms are fully managed and maintained by professional and experienced hotel operators, often well-known global brands.
The hotel operator is looking to maximise occupancy and room rates, benefiting both the operator and the investor.
Hotel projects are on occasion sold with a rental assurance period, which can be a fixed assurance or a minimum return assurance, meaning that if the hotel performs better than expected, the investor will receive an increased return according to there specific room being used more.
This ensures that the investor receives a good yield from their investment whilst the hotel is launched and established in the market.
Hotel room investment has the advantage of not having to deal with the complex challenges of short hold tenancies, non-payment of rent, maintenance and repairs, as the hotel is fully managed by an experienced operator, therefore is a truly passive "armchair" investment.
Hotel rooms are sold fully furnished and replacements, with the hotel operator normally taking responsibility for the furnishings. The majority of hotels operate a reservation system to ensure that rooms are rotated on a strict basis, to provide even occupancy for fair distribution of income to hotel room investors, whilst managing the level of wear and tear of furniture, fixtures and fittings within the room.
Deposit insurance is provided within our off-plan hotel investments to provide investors with reassurance that their deposit is protected for the duration of the build.
We also offer fully operational hotels, with the benefit of immediate income and a proven track record, suitable for investors who don't have the appetite for off-plan property investment.
Some hotel projects have a defined and sometimes guaranteed exit strategy, where the hotel room can be sold back to the developer within a fixed period. For projects without a defined exit strategy, we provide a re-sale service, where we can market and sell your hotel room to our worldwide investor base.
We work with professional established teams of specialist solicitors and financial advisers who specialise in the hotel investment industry to assist with your purchase. In many cases, the hotel investments can be purchased through SIPP's and other relevant pensions structures.
Please see our latest Hotel Investment opportunities.