Hotel Room Investment
Hotel Room Investment is an excellent alternative to the traditional buy-to-let market. These projects give the investor a true "hands off" passive investment managed by a professional hotel management company to give excellent return on investment.
Investors can have the peace of mind that their investment is managed by an expert in the hotel industry who is incentivised to maximise room rate and occupancy levels, thereby optimising the investment yield.
These hotels have established relationships with some of the world's most respected sports personalities, as well as premier global brands such as Troon Golf, Espa, and Elemis. These superb projects are available in a number of locations around the world including the UK, Caribbean and Far East, appealing to a diversity of markets both by location and by type, whether the hotels are golf-based or sit alongside the beach.
Why Invest In Hotel Rooms?
Having ourselves invested extensively in the UK Buy To Let market throughout the 90's and the early 2000's we saw an erosion in UK rental yields in the early 2000's, so started investing more heavily in both the overseas markets and hotel investments specifically, in order to obtain stronger rental yields.
The concept of investing in hotel rooms is similar to that of the traditional buy to let market, but has the advantage that you do not need to deal with the complexities of the assured shorthold tenancies, be it non payment of rent, repairs etc. You are putting your investment in the hands of a professional hotel management company who through the investment structures in place are incentivised to obtain maximum occupancy and room rate, which is in the best interest of themselves and the investor. Most hotels operate with a computerised reservation system with a rotation of the rooms to allow for wear & tear and a fair distribution of income. The investor may also depending on the project be offered by the developer a number of days personal use within the hotel.
The room revenue is distributed on a split basis with the hotel operator, the maintenance for the project is also clearly defined in the contract. Most of the projects offer a guarantee period to cover the soft opening of the hotel and the initial period after the hotel opens and whilst it becomes established.
When choosing a hotel investment, as with any other property investment, it is important to look at the location and also the type of hotel best suited to the area. We ask our developers and hotel management companies to provide projections with regards to occupancy levels room rates etc, in order that we can best assess the investment strength of the project.
We have sourced industry specialists to assist our clients in the hotel investment arena, including solicitors and financial advisers. With many of the projects, if you forgo the personal usage offered with the project, it may be possible for you to use your Self invested Personal Pension (SIPP) to invest in a hotel project. We have a number of projects that are already fully approved for SIPP investments.
Our financial adviser partner can assist in setting up a SIPP to facilitate an investment assist in the purchase and also the possible transfer of an existing SIPP to another provide who recognises this asset class.
Principal International And Hotels
Principal International, in response to the growth in popularity of hotel investments, decided in early 2010 to enhance the range of services available to our clients, by launching specialist websites to provide clients with a range of hotel room investments around the world.
Our aim is to provide our clients with professional assistance in their investment in this relatively new asset class, providing insights into the different projects located both in the UK and Overseas. We work with a number of premier developers and hotel management companies to secure our clients quality properties that offer a truly "hands off" investment, with strong rental yields.
Our experience with the UK buy to let and residential lettings sector, as well as the global property market, has given us an insight into the demand for a more passive investment without losing our focus on strong rental yields and capital growth opportunities.
Find Out More
Please visit the following websites to find more information on investing in hotels:
View Our Hotel Properties
Check out the hotel properties we have available by visiting one of these sites:
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