Hotel Rooms have long been a growing investment sector in the UK, providing essentially an alternative form of buy-to-let property with a continuous stream of short term tenants.
Investing in a hotel room tends to be one of the lowest risk investments and an excellent option to diversify and Brexit proof an existing portfolio, especially when it is UK based.
There are many advantages to investing in a hotel room, some of which are:
1. Hotel Rooms are fully managed by an experienced hotel operator, meaning investors are not responsible for any ongoing management, or the associated costs of running the hotel creating a completely passive income.
2. The rooms often generate higher returns than buy-to-let properties.
3. Buying a hotel room is typically cheaper than traditional buy-to-let properties as they require a lower capital outlay than a flat or house. Making these investments more accessible for investors with smaller budgets.
4. Visit Britain currently forecasts 41.7 million visits; an increase of 4.4% from 2017 and £26.9 billion in visitor spending; an increase of 6.8% from 2017.
Whilst a recent survey by global property advisor CBRE identifies the UK as the top European target for hotel investment in 2018.
5. A hotel investment is easy to calculate for tax purposes and can even be added to a SIPP for an extra layer of tax relief.
As an added bonus, many hotel investments offer periods of personal use each year. This gives investors the perfect opportunity to experience the hotel.
Also published on Medium.
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