Diversify your property portfolio through hotel investment in these cities

 

Hotels are an attractive asset class for many property investors, bringing in healthy yields without the maintenance of buy-to-let; and 2020 could be a good year to invest.

Buy-to-let is still cited as one of the most rewarding places to invest your money, provided you choose the right investment, but hotel room investment is a popular alternative.

Some key benefits

Unlike buy-to-let which normally involves dealing with tenants – unless you appoint a management company – hotel room investments are managed by the hotel, and usually come with a long lease, so they are a good option for investors who want an investment they won’t have to spend time on. They can also provide more attractive yields than a traditional buy-to-let.

Starting price points tend to be lower than investment in a whole property, making it easier to spread your money – and risk – across several hotels in different locations should you wish. The lower cost also means no mortgage is required, which can be beneficial to some investors.

Unlike buy-to-let, the value of your investment isn’t influenced by housing market fluctuations, and many hotel investments come with guaranteed returns as well as capital growth.

Which locations for hotel investment?

Earlier this month, Deloitte published its European Hotel Investment Conference (EHIC) report looking in more detail at the hotel investment sector across Europe as well as within the UK specifically.

On a Europe-wide basis, London came in third position in terms of its attractiveness for the asset class, after Amsterdam and Paris. Of those surveyed, 31% believe hotels will be the most attractive asset class for investment in 2020 because of their positive demand fundamentals (71%) and yield profiles (46%).

Within the UK, the top locations for hotel investment according to the report are:

  1. Edinburgh
  2. Cambridge
  3. Oxford
  4. Manchester
  5. Bath
  6. Birmingham
  7. Glasgow
  8. Bristol
  9. Liverpool
  10. York

The strength of the tourism industry in these areas is a major factor in the results, and the northern cities of Manchester, Liverpool and Birmingham are seeing increased interest from every class of property investor, including in the hotel sector.

To find out about BuyAssociation’s hotel investments as well as residential investment opportunities, see our investments page and sign up for more information.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

Hotel investment

Diversify your property portfolio through hotel investment in these cities

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.