Monthly Archives: June 2017

Is buying a hotel room a good investment?

hotelToday when more and more people put their money in property rather than stocks and other risky assets, it is highly important to understand what purposes different types of property serve. Global market features a new trend – investing in hotel real estate as these commercial objects, unlike residential property, are designed for making money. But is buying a hotel room a good investment decision? In this article, we’ve summarized the most popular reasons why people find it advantageous to put money in hotels.

Hotel room isn’t that expensive

While this is not always true and the purchase price of a hotel apartment depends largely on the hotel’s price tier, on the average, you can buy a room for at least the same sum of money as a residential apartment. But unlike residential property, a room is almost never vacant which means it works for you and earns you money every day. Besides, different areas offer different market conditions, and you can find more than acceptable estates if you put enough efforts.

Potential of tourism destinations

Many investors buy hotel rooms purely for making money, and they say that tourism regions and areas are your best choice. A popular resort attracts thousands or even millions of guests, and each of them wants to have cozy accommodations. While the choice of entertainment always depends on the personal preferences of a given tourist, he or she simply cannot go without a hotel.

Another tip from experienced investors: look closer to emerging markets! Since traditional resorts have quite stable tourists inflow and the competition level is very high here, your income will also be of average level. But developing markets are different. Dubai in the United Arab Emirates is a good example. The total number of overnight visitors in the city grows each year. The local developers and entrepreneurs offer more and more entertainments, F&B venues, and other attractions. All of it results in the constantly growing hospitality sector, and this is something a good investor just cannot ignore. Although it is somewhat riskier than buying a room in a traditional resort.

Bought and forgot

Another reason why many investors prefer hotel property is that you don’t have to take care of it after the purchase. When you buy an apartment and try to rent it out, you have to look for tenants, do the repair from time to time, settle disputes, collect the rent, etc. But a good hotel is managed by an experienced operator – a team of professionals who pay you for using your room or share part of the hotel’s profit. This is very useful when putting money in foreign property.

Use your own hotel room for rest

This may seem a little foolish at first, but during a trip, you usually spend a lot of money on accommodations. Although the main purpose of buying a hotel room is making money, having the right to occupy it several days a year is a good and useful bonus. Many managing companies operating hotels offer around two weeks a year.

Hotel industry is more flexible

Lastly, a professional when asked ‘Is buying a hotel room a good investment?’, will tell you about the flexibility of the industry. Broadly speaking, it means that, unlike residential property, a hotel has a rich variety of strategies to overcome various challenges. The administration can replace the staff, reconstruct the venues in the building, focus on attracting different clientele, offer discounts and promotions, find a cheaper supplier, etc. This may sound like something of little importance for an amateur, but in fact, such measures can save a large sum of money thus allowing the hotel to successfully cope with the current difficulties.

Le Quest Condo

If you’re a renter/ home owner or perhaps even an investor you’ll know how hard it can be to find the perfect property and of course in the right location. Did you know that Singapore constantly rates as one of the world’s best cities to live in? It’s incredibly safe offers some of the best schooling in the world; expat communities that are growing by the day and of course let’s not forget about the amazing food. Of course you won’t be let down by the developments and properties available on the market as well such as Le Quest Condo.

quest

Whether you’re looking just for a place for you or you and your family Le Quest has some great facilities where you can all unwind and relax at the end of the day and these include a stunning 50m Pool and an indoor gym to stay healthy and they’ve catered for functions with a great function room and shopping facilities to keep everyone entertained.