Over the past few years the UK and overseas hotel investment sector has seen a significant growth in demand. It is a sector that offers high yield of up to 10% net for a medium term investment (up to 10 years) . The prices range from approx £50k to £150k per room and come fully managed and furnished. The investor benefits of hotel investment property is that it is totally hands off, in other words you are not part of the operation. Once the developer has completed the build/renovation of the hotel they hand it over to the management company to run. This means all the day to day operational duties and performed by an experienced and professional team to ensure the hotel is run efficiently and all problems are handled internally such as damage, refurbishments, upkeep etc. Additionally the booking system and hotel promotion is handled by the hotel operator making sure that the hotel runs to the maximum occupancy and ensuring a profitable hotel.
For the best hotels in the right locations hotel occupancy are over 80% and for this reason it is easy to see why investors would be interested in the Hotel investment sector.