Hotel room investments are one of the newest and exciting investments on the global property market.
Part commercial property investment, part residential property investment, hotel room investment is one of the fastest growing forms of investment, here’s why.
Investing in hotel rooms makes hotel investment accessible to the masses. The hotel industry is one of the biggest and fastest growing industries in the world; all the smart global funds and large investment companies are increasing their exposure to hotels – there are even hotel investment funds. Many private investors don’t like investing in funds, they like to keep control of their own investments, but short of buying a hotel they are stumped. Now, they can invest in a hotel room.
Investing in a hotel room tends to be one of the lowest risk investments out there. When you are investing in a globally recognised brand, further, into an established hotel under an established brand, you can see why it would be a low risk investment.
Hotel rooms are the perfect investment. You choose a hotel that is performing well from a number of hotel investment companies, you invest in a room (or rooms) and sit back and collect the income.
A five star hotel operator will fully managed your suite within a hotel investment which provides investors with positive returns. Your room becomes part of the hotel stock, it is serviced and managed as part of the hotel, and you get a share of the hotel income. Depending on the term of the investment there are usually incremental refurbishments, again, this is simply because your room is taken care of with the rest of the hotel. You will be allocated usage of your room which is normally a 2 week period in every year.
In a statement the Algarve Tourist Resorts and Hotels Association AHETA said the average overall occupancy rate per room was 68.4 percent, up 12.1 [percentage points] on April 2018, with the Easter season having positively influenced the results.
Growth in turnover kept pace with that of occupancy in April, up nine percent on a year earlier.
The success and growth in the Portuguese tourism market will create an secure alternative investment in your property portfolio.
The familiar nature of the hotel industry has boosted its prominence as an alternative asset. Hotels in a prime location can boast incredibly high occupancy rates and stable rental returns.
The rarity of this form of investment – which is traditionally reserved for funds and institutional investors – makes this asset class one of the most sought-after options for those looking to diversify their portfolio.
Modern suites within a Portuguese hotel investment provide investors with an innovative investment that generates returns almost unrivalled in today’s Portuguese property market.
Rooms within a hotel will be leased to a successful hotelier who will market, manage and operate the investment. The turnkey nature of the investment allows investors to secure a passive income stream.
As you will own the full Title Deed, you can sell your hotel suite/suites at any time aftercompletion. The developer will facilitate on site sales and marketing to owners.