Why Invest In Hotels?

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Hotel room investments are one of the newest and hottest kids on the global property
market. Part commercial property investment, part residential property investment, hotel room
investment is one of the fastest growing forms of investment, here's why.
Ease, Accessibility
Investing in hotel rooms makes hotel investment accessible to the masses. The hotel industry is
one of the biggest and fastest growing industries in the world; all the smart global funds and
large investment companies are increasing their exposure to hotels -- there are even hotel
investment funds. Many private investors don't like investing in funds, they like to keep control
of their own investments, but short of buying a hotel they are stumped. Now, they can invest in a
hotel room.

Low Risk
Investing in a hotel room tends to be one of the lowest risk investments out there. We can -- and
often do -- choose to invest in only the biggest and most reputable establishments. When you are
investing in a globally recognised brand, further, into an established hotel under an established
brand, you can see why it would be a low risk investment.

Hands-Free Investment
Hotel rooms are the perfect investment. You choose a hotel that is performing well from a
number of hotel investment companies, you invest in a room (or rooms) and sit back and collect
the income. Normally when you read things like that it is too good to be true, but not in this.

Your room becomes part of the hotel stock, it is serviced and managed as part of the hotel, and
you get a share of the hotel income, either they take a percentage of the income from your room,
or you take a percentage of the overall hotel income. Depending on the term of the investment
there are usually incremental refurbishments, again, this is simply because your room is taken
care of with the rest of the hotel. You even get some free usage thrown in.

Guaranteed Rental Yield

Many hotel investments deals come with a guaranteed rental yield. This takes another layer of
risk away from the investment, and makes calculating return on investment a doddle.

Guaranteed Buy Back

Many hotel investments seal the deal with a guaranteed buyback offer. This stipulates that the
hotel owner or investment management company will buy back your hotel room after a given
period for a contracted amount. This is usually 125-150 percent of the purchase price, and in the
best deals the buy back is optional; you can either stay on as the owner or sell on the open
market.