Hotel Property Investments
Global traveller numbers hit over 1 billion on a yearly basis meaning a 6th of the world's population are potentially looking for hotel accommodation. With this in mind investing in hotels has been a wise move by savvy investors for a long time. It is a known well fact that if you try to book a hotel room within days of travelling you will most likely fall into troubles as hotels are often fully booked, especially in parts of the UK.
In addition to high demand, hotels are not cheap to book into and offer far higher rates than any other kind of accommodation, often hotel rooms can cost hundreds or even thousands of pounds a week. These high rates are one of the main reasons why investors benefit from such high yield returns. Unlike most other investments the price of a unit and the yield supplied scale up much better, the reason for this is often due to the fact that higher end hotels cater to much higher standards, therefore, can easily charge much more for rooms, but cheaper hotels can squeeze in many rooms and keep them fully occupied, this easily keeps rental yields close to double figures across the board.
Best Location For Hotel Investments
Hotel location is obviously one of the key factors for travellers, holidaymakers and business persons. We have found that in the UK areas which consistently demand high occupancy rates all year round are coastal areas of the UK, combined with the fact that prices in such locations are suitable for the low and mid-range investor. As for Urban locations such as London, we find that the prices are often to steep for most of our clients, therefore, we stick to the coastal holiday resorts.
With major chains such as Premier-inn and Travel-lodge overbooked in these areas it falls on independent hotels to fill the large demand. Some towns such as Newquay in Cornwall benefit from many holidaymakers in the summer and then again from the global surf community in the winter months as the surf is some of the best in the world attracting the World Surf Championships. With such a reliable stream of customers, hotel investments are among the most secure.
March 21, 2019
Best Property Investments UK – According to the latest Residential Market Survey by the Royal Institute of Chartered Surveyors (RICS), national house prices, demand, new vendor instructions and sales all continued on a downward trend throughout the end of 2018. Simon Rubinsohn, RICS Chief Economist, said this is mainly as […]
Hotel Investments VS Purpose-Built Student Accommodation And Why Hotel Rooms Are Becoming The More Lucrative Investment
January 2, 2019
Tougher tax regimes, stamp duty surcharges and stricter regulatory requirements for landlords mean the erstwhile honeypot of the property investment game, i.e. traditional residential buy-to-let investments, are slowly making way for alternative commercial property investments, such as hotel room investments and purpose-built student accommodation investments (PBSA). These commercial property investments […]
What is a Staycation? The English dictionary defines the word ‘staycation’ as, “A holiday spent in one’s home country rather than abroad, or one spent at home and involving day trips to local attractions.” The term staycation came about because an increasing number of Brits are favouring staying within the […]