Small is beautiful (and profitable). The rise and rise of the boutique hotel.
UK based boutique hotels and boutique hotel brands continue to be at the forefront of traveller and guest needs in 2018.
Booking.com identified “mind, body and soul” as a key factor for hotel bookers. Indeed they state that “it won’t be uncommon to find a diverse range of SanctuStays, accommodations ranging from villas to apartments, resorts and more, offering complementary meditation facilities, health spas, wellness workshops and outdoor facilities to promote a holistic lifestyle and clearer path to self-discovery. (You can read more here). Boutique hotels, particularly those with a lifestyle and spa element provide an overall offering that gives people the opportunity to get away and recharge. Quick city breaks in a low-cost, value hotel, such as a Premier Inn don't provide the ability to recharge that one can find in a manor hotel in the country.
Customer expectations are also changing, increasing personalisation and authenticity are expected to a far higher degree among a range of products, and hotels are no different. Boutique and country manor hotels offer hoteliers the opportunity to meet this need in a way which the large chain operators cannot.
This personalised solution can drive higher revenue per room, and increase occupancy levels, even outside of weekend stays. A strong brand identity, with a well thought out lifestyle offering, incorporating a great spa facility, will drive visitor numbers.
For investors, these trends highlight the importance of selecting the right type of hotel room to invest in. Select Portfolio is currently offering our 3rd manor collection hotel room investment. After the success of Caer Ruhn Hall and Dunsmore Hall hotel, Lakeside Manor is s stunning 12th Century English country manor, with extensive grounds, a superb trading business but with excellent opportunities to develop the property into an exclusive destination hotel.
You can read more here about Lakeside Manor.
Purchasing a hotel room buy to let in Lakeside Manor will offer investors a circa 10% rental return per annum over 10 years. The developer is offering a 125% buy back at year ten. Lakeside Manor will join the operators existing collection of hotels. The hotel is now over 50% sold out so demand for this hotel room investment is high.