Although it is not unknown for a hotel group to land up in financial strife it does remain true that the hospitality industry as a whole remains by and large healthy – even in the face of global macroeconomic woes. this is in part due to the diversified nature of its clientele and the various price points at which the hotel services are offered. High end hotels cater for a specific rarefied clientele, while the middle price segment caters to business travelers and at the budget end both business travelers and those looking for a value for money base for vacation experiences fill the beds.
All this means that investment in hotels is one of the safest types of property investments one can find. The positives to investing in hotels far outweigh the negatives.
One of the factors that is making hotel investment so attractive is the increasing number of ‘Golden Visa’ opportunities in Europe (as well as in certain Caribbean and Pacific Ocean countries). In a nutshell those who invest specific amounts in property (for instance) may be eligible for citizenship.
Of course there are a number of specific benefits that make investing in hotels and specifically hotel rooms attractive – especially for those who are new to property investment.
The investment period is usually set for a five years and after that period has elapsed it is common for the investor to sell the property back to the hotel management group. It is simple and the investor is guaranteed and monthly income and that all important buyback at the end of the 5 year period. The return on the buyback is usually around 15%.
All told industry growth and the nature of the market ensure that the positives to investing in hotels make it a real estate investment that will suit those who want to dip their toes in property investing without commitment enormous resources to the effort. It is a property investment that is well worth exploring.