Invest In Hotels

Why Invest in Hotels?

Investing in hotel rooms is an excellent and profitable 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 of a leasehold tenure, similar to a residential apartment, 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 under well-known global brands.

 

Investors receive either room revenue split between the investor and the hotel operator, or, a split of the net income accrued from all of the areas of the guest spend attributed to the room, including food and beverage, conferencing and entertainment. The hotel operator is therefore incentivised to maximise occupancy and room rates, benefiting both the operator and the investor.

 

Hotel projects are on occasion sold with a rental guarantee period, which can be a fixed guarantee or a minimum return guarantee, meaning that if the hotel performs better than expected, the investor will receive an increased return. 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 complexities and challenges of assured 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.

 

Rooms are sold fully furnished and replacements, with the hotel operator normally taking responsibility for the soft 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.

 

Certain 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 world-wide investor base.

 

We have a professional and well established team 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. Eligibility is dependent on the suitability of the sales contract to the pension administrator.

 

View our excellent range of hotel investments.