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Birmingham City Centre Hotel, up to 11% Net Yields Projected, Non Status Finance & Developer Buy Back

JQ Hotel Birmingham •

Birmingham

•

US

Our Rating:

Excellent UK Hotel Investment in Birmingham city centre, up to 11% Net Yields Projected, Non Status Finance & Developer Buy Back

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JQ Hotel Birmingham

Principal International are delighted to announce the release of an exciting new hotel investment opportunity in Birmingham's vibrant Jewellery Quarter.

This fantastic 4* boutique JQ Hotel will be operated by Macdonald Hotels and Resorts; a premier and established hotel operator with 45 hotels in the UK and many years of experience in the Birmingham hotel market.

Priced at just £89,950 these rooms are 23% below a recent RICS valuation and offer 50% non-status finance with just £26,985 required at exchange. Investors will receive an excellent return based upon the net profit from all areas of the guest spend attributed to the room, not just the room income, for example, food and beverage. This is projected at up to 11% net, however investors have the comfort of a minimum guaranteed return for the first 2 years whilst the hotel is established.

The investment also features a guaranteed and profitable buy back from the 4th anniversary from completion. Investors will have peace of mind that their deposits are protected by an insurance policy for the duration of the build.

There is a severe shortage of 4* hotels in the Jewellery Quarter, with just one hotel currently supplying market demand. There are a number of 3* hotels within the area, which are lower end budget hotels, many of which are in immediate need of refurbishment, therefore the JQ Hotel will be highly competitive in the Birmingham market. The comparable room rates demonstrate how competitive the JQ Hotel will be.

The JQ Hotel is situated on Carver Street, close to the city centre, with excellent road, rail and air links; Birmingham New Street station is just 1 mile away and Birmingham International Airport is just 11 miles away.

The JQ Hotel will uniquely feature on-site car parking for guests, which is a rarity for city centre hotels. The hotel will widely appeal to the conference and events market, as many would prefer to stay in a more central location, but aren't currently able to as of the lack of hotels with car parking.

Birmingham is one of the leading UK markets for the conference and events industry, which is fuelled by the NEC Group, attracting over 4 million visitors per year. The Birmingham NEC is the largest exhibition centre in the UK and welcomes over 2 million people per year; the ICC is one of Europe’s leading conference venues, with 300,000 delegates per year; the LG Arena is a major entertainment arena and is one of the busiest music venues in the world, with over 900,000 visitors per year and the National Indoor Arena is a large sports, entertainment and exhibition venue attracting up to 1 million visitors per year.

The Birmingham hotel market frequently displays signs of frustrated demand created by Birmingham's conference and events industry during key events, which results in an increase in the revenue per available room (RevPAR).

Birmingham has seen growth in its tourism market for visitors from within the UK. Tourists are attracted to the vibrant Jewellery Quarter as of its proximity to the city centre and it also has a wide selection of bars and restaurants. Birmingham is the UK’s third largest retail centre and is home to the famous “Bullring”, which is the UK’s busiest shopping centre and is just over 1 mile from the hotel.

The lack of supply of 4* hotels, the location of the hotel and car parking presents the opportunity for the JQ Hotel to achieve higher than average room rates and occupancy for the Birmingham hotel market.

Availability is strictly limited; therefore we would recommend that investors act promptly to take advantage of this exceptional opportunity.

Pool: N/A
Parking: Yes
Completion: Q3 2013

Price
Guides

Standard Room

£89,950