As the world economy becomes more prosperous especially in developing countries like India and China, there is a steady increase in tourism and related industry in UK and elsewhere. UK especially is a much-favoured destination for tourists from these countries and elsewhere. So, it is not a surprise that one of the fastest and heavily invested industry in UK is the hotel industry. In fact, in the second half of the previous year, there has been a record £5.5 billion investment in this industry. So, if you are looking for the only hotel investing guide you will ever need in UK, you have come to the right place.
To start with, let’s first look at the reasons on why investing in hotel property in UK will give you a good reason. To start with, the industry is pegged to grow at a yearly rate of 3.8% from now to 2025 and will become near about 10% of the total GDP of UK. This industry is pegged to offer jobs to 3.8 million people and mostly youngster. Which is why the government is going out of its way to make it easier for investors to invest in hotel industry.
Secondly, new properties are always coming up in the market and not just your traditional hotels. Tourists today are more eager to experience a country rather than just visit the main important sites; which means many people are eager to have an authentic experience in say a quaint British village or an island life in Scotland. That in turn has helped property owners with historical buildings to turn their property in bed and breakfast (take for example the Lickleyhead Castle, the 15th century castle and principal seat for chieftain of Clan Leslie part of which is run as a B&B). Property owners like that are always looking for investors and most of these properties are booked for months in advance meaning a good return for investment.
Thirdly, property is a comparatively safer investment than any other and if you are looking for a long-term investment plan, then most financial investors will advice you to invest in a property. However, investing in a property to become a property owner is a hassle for many because they can’t take the time off from their busy schedule to maintain the property. Plus, they have to manage the booking aspect of the business as well and depending on sites like AirBnB or HomeAway come with their own risk. However, when you invest in a hotel property, all you have to do is invest the money and the hotel will look after the rest. They will do the booking, cleaning and looking after the guests; all you have to do is collect the rent. This is one investment that will start paying from the next day!
With a variety of hotel property in market, from B&B to luxury suits, you will always find a property to invest in according to your budget. The entry point in this investment can be as low as £60,000 which many can do with their own cash savings without having to restore to mortgaging to finance their investment. It is also a long-term investment; many hotels offer buy back after a period of 5 to 10 years with as high as 125% of your initial investment. Your yearly income from the property can be around 8% of your investment; and there are not hidden cost or extra payment that you have to make if you buy a residential property. Moreover, since hotel rooms are commercial property, you don’t pay either stamp duty or capital gain duty when you sell your property.
So now that you have a fairly good idea on hotel investing guide you need for UK, go ahead make yours!