UK Hotel Room Investments
Why invest in a UK hotel room?
- High rental yields of up to 10% NET per annum with some investments offering assured returns over a 10 year period.
- Affordable entry levels with investments from £65,000 which do not incur stamp duty tax.
- Developer buy back options from year 5 and up to 125% in year 10.
- Fully mananged, passive income asset with experienced hoteliers responsible for day-to-day operations.
- Personal usage options available with some investments offering owners 2 weeks free accommodation each year.
- Leases of up to 125 years with title deeds recorded with the land registry.
Find out more about UK Hotel Investments
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Latest Hotel Room Investment Developments
Investing In UK Hotel Rooms
UK hotel room investments are a popular addition to any investment portfolio due to their affordable entry levels as well as their completely passive nature. With over 10 million domestic trips within the UK between January – October in 2013 (Source: VisitEngland), and an upwards trend for ‘staycations’ the UK offers a fantastic holiday destination for many. As such, UK hotel room investments provide another popular investment option in a consistently successful sector.
Hotel room investments are a relative new concept in property investments and are an attractive option as they offer high yields and strong capital growth, whilst being a completely passive investment. The concept is simple, investors are offered the opportunity to purchase individual rooms or suites within hotels and receive revenue based on the hotel’s operation. Unlike purchasing individual houses, investors are not burdened with on-going management and repair costs.
Hotel rooms for sale
Select Portfolio are pleased to offer a fantastic UK hotel room investment opportunities, where investors are able to benefit from extremely low entry-level prices, that offer excellent returns for a guaranteed period, from a completely passive investment.
Select Portfolio offers a selection of hotel room investments that offer investors hands-off property investments with long leases and high yields. The hotel rooms offered for sale have passed a strict and thorough due-diligence process to protect the security of the investment, and are all owned and operated by experienced hoteliers with proven track records.
Hotel room investments in London
Whilst demand for hotel room investments in London remains high, the growth in yields per room produced by regional hotel rooms across the UK provide opportunities with greater value, and higher ROI.
As a result, Select Portfolio choose to shortlist hotel room investments in cities across the UK, that are still experiencing high demand for short stay accommodation. These cities also offer lower purchase and operating costs, high capital growth and reduced competition.
Investment in the hotel industry has been increasing in recent years (research undertaken by Knight Frank), and this looks set to continue. An investment in a hotel room is to invest in a booming industry with a bright future forecast.
For more information on hotel investments in London in 2018 click here.
Buying a hotel room as an investment
Buying a hotel room or apartment is a straightforward property transaction that will not attract any UK Stamp Duty on purchases up to £150,000 whilst often still providing the investor with a lengthy lease and title deed with the land registry.
How do hotel room investments differ from traditional buy-to-let properties?
With a less expensive purchase price and no requirement for a mortgage, a hotel room offers a regular rental income and a guaranteed rental yield, that a traditional buy-to-let does not offer.
Whilst most investors are unlikely to move into a residential property originally purchased as a traditional buy-to-let, the option is always there for them if they so wished.
With a traditional buy-to-let property investment, investors could have the choice to reside in their property if they so wished. With a hotel room investment, the room is available for short stays and holidays and operated by the hotelier. This ensures the unit generates the required revenue to ensure the investor receives their annual returns.
Some hotel room investments offer free or reduced rates for personal use for investors. This is usually limited to one or two weeks of the year and restricted to certain periods.
Are hotel rooms more affordable than traditional buy-to-let properties?
Unlike traditional residential buy-to-let properties, the hotel investment business model ensures the investor has no ongoing fees or maintenance considerations. This means the investor does not need to concern themselves with finding tenants, void periods, or the general upkeep and maintenance of the property.
These costs are factored into the price of the hotel, before any returns are projected from the operator. As such, this hands-free investment opportunity provides an attractive addition to an existing property portfolio and a sensible diversification from a traditional buy to let.
Low purchase prices, fully managed, no ongoing maintenance and a passive income all ensure hotel room investments remain a highly attractive property investment option.