The Advantages and Risks of a Hotel Property Investment
- 7 years ago
A hotel property investment can give you a steady stream of income.
With an exit strategy that can deliver a lump sum profit when you decide to sell up.
There are also risks involved that can be avoided if you do your research and seek out the right advice.
Do Hotel Properties Make Good Investments?
They make great investments because they can give you an average yield of around 8% each year.
Hotel property investment can give you great returns on your savings compared to other assets.
Hotel investments are also fairly long-term. The investment can last for up to 10 years with an optional buy-back option of at least 110%.
This provides an exit strategy with assured capital appreciation should an investor want to free up cash.
What are the Advantages of Hotel Investments?
Low cash and no mortgage requirements - A hotel investment starts at £60,000.
No admin required - Hon’t have complicated tax relief rules or associated cost deductions such as stamp duty.
Fast results - Fully managed by the hotel with fees out of pocket.
Diversifying your portfolio - Spread your risks, hotels don't rely on the property market.
The Risks of Hotel Investments – How to Avoid Them
Long-term hotel room investments aren’t known for their capital appreciation, although an investment with an assured buy-back will give you capital appreciation.
The location of your hotel investment is very important and there needs to be a thriving tourism market.
There will be competition, so consider how this may affect the business.
The track record of hotel management will reflect how happy the guest are and how well the property and business is run.
Every investment has risks, but hotel rooms are considered to be low risk and high reward.
Get in touch with us today.
Sterling Woodrow
New North House,
Ongar Road,
Brentwood,
CM15 9BB
01708 922222
With an exit strategy that can deliver a lump sum profit when you decide to sell up.
There are also risks involved that can be avoided if you do your research and seek out the right advice.
Do Hotel Properties Make Good Investments?
They make great investments because they can give you an average yield of around 8% each year.
Hotel property investment can give you great returns on your savings compared to other assets.
Hotel investments are also fairly long-term. The investment can last for up to 10 years with an optional buy-back option of at least 110%.
This provides an exit strategy with assured capital appreciation should an investor want to free up cash.
What are the Advantages of Hotel Investments?
Low cash and no mortgage requirements - A hotel investment starts at £60,000.
No admin required - Hon’t have complicated tax relief rules or associated cost deductions such as stamp duty.
Fast results - Fully managed by the hotel with fees out of pocket.
Diversifying your portfolio - Spread your risks, hotels don't rely on the property market.
The Risks of Hotel Investments – How to Avoid Them
Long-term hotel room investments aren’t known for their capital appreciation, although an investment with an assured buy-back will give you capital appreciation.
The location of your hotel investment is very important and there needs to be a thriving tourism market.
There will be competition, so consider how this may affect the business.
The track record of hotel management will reflect how happy the guest are and how well the property and business is run.
Every investment has risks, but hotel rooms are considered to be low risk and high reward.
Get in touch with us today.
Sterling Woodrow
New North House,
Ongar Road,
Brentwood,
CM15 9BB
01708 922222