Introduction to Hotel Investment Opportunities:
The current economic climate is presenting new and unique investment opportunities, particularly in a number of commercial sectors. The hotel industry has had to re-think it’s method of financing due to the lack in availability of bank capital, and this has presented individuals with attractive investment opportunities.
Hotel investments are becoming increasingly popular, with the UK being one of the best places to invest. Fundamentally the investment works the same as any traditional buy-to-let property, except that the asset is managed completely by a professional hotel management company, allowing you to make a hassle-free passive income.
Benefits of Hotel Investment:
Hassle-free and Minimal Complications
One major benefit of hotel investment over traditional buy-to-let properties is that you don’t have to deal with the complexities of assured short-hold tenancies. Due to the managed, turnkey nature of the investment, there is no issue with non-payment of rent, or constant repair and maintenance requests. You also don’t have to spend any time on furnishing or decorating the property, as they come already fully furnished.
Time is Money:
The hassle-free nature of the project also works to further enhance its profitability, as time is money. After the purchase process is complete, you are not required to do anything else, and can simply sit back and wait for your passive income to enter your bank account. With traditional property investments the additional costs soon add up, and you have to consider costs such as fuel and indeed time when considering your yields.
Professional Hotel Management Company:
As mentioned your hotel unit will be looked after completely by a professional management company, who have vast experience as well as a track record of success in the industry. The investment is conducted in a way that offers incentive to the hotel management company to maximise the income generated from your asset, and thus you can rely on them to be fully-committed to your investment.
Hotel rooms can generate much higher income yields when compared to traditional buy-to-let properties. With gross annual yields of up to 12% and sometimes higher, they far out perform the typical 5% attainable from traditional buy-to-let properties.
All of these factors contribute to achieving higher NET yields. Traditional buy to let properties typically return 4-7%, normally 8% absolute maximum, and that's gross. After that, you still have to pay for management, sourcing tenants, maintenance etc. With purpose built student accommodation units, your yields are projected to be 10%, hassle free, and professionally managed, making it a very attractive prospect now and in the future. It is even possible to receiver guaranteed income for up to five years.
A Developing and Resilient Market:
Rental income, in the student property sector, has increased by 3-5% each year for the past six years. This means that you can be confident that your income will also increase on an annual basis. These statistics also prove the resilience of the sector in the face of a general economic downturn.
Guaranteed Income Periods:
To add further weight to the reliability of hotel room investment, many opportunities come with a guaranteed income period. This allows you to be 100% confidant and assured of the income potential of your asset, and in addition removes the initial growth phase of a new hotel. Guaranteed income periods can vary from between 1-5 years.
Tax Free Caspital Growth and Earnings:
Many of the opportunities currently on the market allow you to build your hotel investment into your SIPP (Self Invested Pension Plan). This allows you to benefit even further from your investment, providing you with tax-free earnings and capital-growth. It should be noted that if you do make your hotel room investment as part of an SIPP you aren’t able to use the room yourself, as is sometimes an option within this type of investment. This does, however, further enhance the income potential from the property, and with the money you save you can take a break wherever you want.
You can invest wherever in the country statistics suggest the highest potential profit lies, as you don’t have to be on-call, and you are never required to be present at the property. There is no need to consider your own proximity to the investment, and you can afford investments in areas where usually you may be priced out of the market.
Ease of Exit
As your asset begins to attract more income, it will increase in value. This gives any investor the assurance that the investment will remain an attractive prospect long into the future. In turn this gives investors the confidence that they can easily exit the investment at any point. Also, as there is a limited availability of such investment opportunities but an increasing demand, resale of the asset in the future will be quick and painless.
Location Location Location:
As with any property investment, location is of course a crucial component of its success. The benefit you have from hotel room investment is that you don’t have to consider your own proximity to the location, and can thus select the best location purely based on income potential. There are a number of options when it comes to prime locations, and both city centre boutique hotels and countryside house hotels offer unique benefits.
Another benefit of investing in hotel rooms is that you can buy a property in a prime location usually financially out of your reach, with such investments being considerably cheaper than apartments or houses in the similar areas.
The UK boasts Europe’s best performing Hotel market, and this continues to increase each year. A UK Hotel investment report carried out by industry experts, Savils, in the spring 2012, revealed that UK investment had increased by 0.8% to 1.5 Billion in 2012. What’s more is that 68 % of this investment was focused in London and the South East of England.
The report goes on to say that the majority of investment had been focused in prime locations, and thus much of the investment has been distributed across the South East of England.
This is largely due to the fact that the South East attracts a large number of tourists and achieves high property appreciation rates. Together this means that Hotel investments in the area achieve sustained rewards long into the future. There are, however, also a number of high yielding hotels in other areas of the UK, and often their growth is not directly connected to the regular housing market.
In addition to location, it is also important to consider the amenities available at the hotel, and their proximity to both tourist and business sites and centres. Countryside Hotels with golf courses, spas, swimming pools, banquet halls, and conference rooms, and in proximity to transport and tourist sites are an easy sell, as are city centre hotels near to transport and in close proximity to business centres.
Hotel Investment with Emerging Property:
Emerging Property has a number of investment opportunities within the UK Hotel industry, and we work only with leading Hotel Management Companies to ensure their profitability. We work tirelessly to source the best hotel investments for our clients, and can offer you support and assistance from beginning to end. Whether you are interested in 5 star or budget hotels, we can find the perfect investment for you.
For detailed information on this unmissable investment please contact us by filling out the form below or calling us +44 (0)203 287 8727. We can send you:
- A Comprehensive Investor Report.
- Availability, Price List, Floor Plans.
- Details on the Guaranteed Rental.
- Further information on Guaranteed Returns and Long-Term Growth.
- Please ask us any questions you have, we are happy to help.
Please ask us any questions you have, we are happy to help.
Townhouse USA Investment
- 18.5% NET Guaranteed for 7 Years.
- 10 Units Built and Rented.
- 7 Year Leases Signed By Multi-Billion Dollar Oil Company.
- Rent increases annually inline with USA Consumer Price Index.
- Invest in modern homes from $160,000.
Apart-Hotel Investment with 70% Finance
- 10% NET Guarantee for 5 Years.
- 70% Finance & Buyback Year 5.
- Up to 19% Net Return On Capital.
- Only 15 Apartments Available.
- Luxurious aprt-hotel rooms from £190,000.