Hotel Property is any real estate used for hotel purposes.
Why invest in a Hotel Property?
The decline of the pounds value on the international market has allowed British tourism to rise and subsequently hotel occupancy has benefited from this. Data from the Great British Staycation, revealed that in 2018, 52% of 25-34-year old took holidays within the UK for the tourist attractions and financial benefits. The fears over Brexit, meaning VISA costs will be approaching to travel within the European Union and a rise in crime throughout Europe are some of the main reasons, UK has become a holiday hotspot. With staycations becoming more popular, the demand for UK hotels has risen, particularly outside of London.
The rooms are part of the hotel stock so will be serviced and maintained by the management company.
A hotel comes with no running costs and no need to find tenants. Operational hotels will offer an immediate income with no development risk.
In light of Brexit, corporate travel budgets are higher than ever.
Hospitality is a strong industry
The hotel industry plays a big part in UK economy reaching a total turnover of £98 billion in 2017.