Hotel Investments – buying a hotel property
When one thinks of making a hotel investment, the idea that shapes in the mind is huge, luxurious hotels - ergo, a huge investment. But that may not always be the case. There is in fact a property investment concept that allows you to invest in parts – ie not own an entire hotel or a chain, but maybe a room or a suite.
Properties Discounted has all the information you need to make a hotel investment. Whether you are new to the business, or a seasoned investor, we can support you every step of the way with your new purchase.
So, what's so great about making a hotel investment, and how do you go about doing it?
Invest in a hotel suite or room
It is in fact a very simple idea to grasp. Investing in a hotel is as simple as investing in a commercial or a residential property. It is a matter of finding a hotel room or suite up for grabs and of course, the requisite financial sum. You can buy a hotel room freehold and lease it out to a management company. As with commercial properties, it is possible to arrange leases of up to 10 years. This will ensure that you get paid the rent whether or not the room remains occupied. The hassle of course will be minimum as the management company ensures the running and maintenance of the room or suite. You will also benefit from being able to use the hotel suite as your own, without paying the rent of course!
Why invest in a hotel?
Hotel investment is also a worry-free option. Once you have invested in a hotel, you can be assured that it will be a regular source of income for you. The management company you lease it out to will pay regularly. Not only this, hotels are busy places, they cater to people's travel and short-term accommodation needs. This means their occupancy rates are high - hotels are always in demand. The return on the hotel investment is great with yields as high as 6% to 10%.
Since hotels are developed in prime locations, there is no worry about the value of the property decreasing drastically. Not only is the location an attractive feature, but hotels come equipped with an array of facilities such as swimming pools, gyms and other recreational facilities. As an owner of one of the hotel suites, you have access to the hotels facilities too.
All in all, the hotel suite investment is a brilliant investment property that has promises a great return on investment, additional perks of the hotel's services and is very low maintenance and less hassle. The hotel room investment is managed by a management company, leaving you to enjoy the fruits of their labour and your money. It is also possible to lease out the rooms and suites to paying guests. The hotel acts as managing agency, and you are left hassle free.
A key thing to remember is that although hotel investment, or hotel room investment as it is sometimes called, is an attractive feature, the initial investment may be high. Popular hotels or high-end hotels may have prices to match their standards and popularity. It may be wise to research and look into hotels that may not be very famous, but are popular, in prime locations and still have high occupancy rates. Their prices may be within reach and their return will be ensured.
Whats more, if you buy a hotel the hotel investments can be used in Self Invested Personal Pensions and other pension schemes. If you are interested in finding out more about SIIP and Pensions, and how they can be used by you as an investment tool, contact our dedicated team at Properties Discounted now. We are here to help you.
So, if you are looking for an attractive new prospect to add to your property portfolio, look no further than Properties Discounted. We can hep you buy a hotel to suit your portfolio, and advice on all aspects of hotel room investment. Call one of our advisers 24/7 to find out how we can help you. Call now on 08007 999 999.
