If you are considering real estate investment, especially in the UK, you have many options. From traditional cottages to shared-ownership systems to off-plan homes, they all have their advantages, but one type of investment is increasingly becoming the alternative of choice – buying to rent hotel rooms.
Hotel and resort developers in the UK offer individual investors the opportunity to purchase hotel rooms as part of a high-end development. The investor sees an annual income from renting rooms, profits from capital growth and can even use the hotel room as a perfect holiday destination with all the advantages of a top-class hotel.
Well, here are good reasons why investing in hotel rooms in the UK could be a good idea:
Buy hotel rooms to reduce your risk exposure
When investing in a hotel room, your investment is less in the room than in the success of the entire hotel. Generally, you buy to let suites and hotel rooms together, so you earn a percentage of room rates throughout the hotel, not just in your own room. A single investment property may be left vacant for months, which means lost revenue, but hotel rooms attract guests year-round.
Buy to give hotel rooms a low initial investment – and a reasonable return
When it comes to investing in real estate, the current markets can make it much harder to access the funds needed. These problems only occur when the property you are investing in is overseas. When it comes to buying a hotel room, the developers and agents are likely to have negotiated in advance with a bank to assist potential buyers – banks are often more willing to invest in the security of these types of developments, by experienced one’s Developers and management operate teams.
When you buy hotel rooms, you benefit from capital growth and regular income
As with any purchase to make real estate investments, hotel rooms can provide both a steady income and the potential for capital growth. Unlike buying a single property, buying hotel rooms can usually provide a higher level of security. While your property will remain vacant while you are searching for tenants or vacationers, high-end hotel rooms will always be popular with overseas tourists to “locals” on weekends. Traditionally, high-end hotel rooms will also generate a higher rent per night than standalone apartments or rental apartments.
When you buy hotel rooms, someone else cares about the daily stress
The biggest attraction when buying hotel rooms is the fact that an experienced and professional team is responsible for everything from the completion and furnishing of the rooms to the repair of broken toilets. Buy to let the owner, management companies will pay a high percentage to take care of the daily needs of their properties – if you buy hotel rooms, this service will be installed.
Experienced management means existing contacts with travel agencies and tour operators, it means proven marketing methods and extensive marketing budgets. It also means that you never have to get a call from an angry neighbour or have to track a late-paying tenant. In fact, it is the perfect option for investors who prefer to enjoy the benefits and leave the hard work to someone else.