WHY THE HOTEL MARKET IS GOOD INVESTMENT BET FOR 2019

Commercial property is always a good investment vehicle for those looking to grow their income.

Pension funds and investment houses usually look at property that yields strong recurring returns.

Of the last decade or so, the hotel market has emerged as a good area to invest. The strength of the tourism sector has led to some stellar returns for those who have included hotels in their portfolio.

In particular, London hoteliers saw a record 2014 with a slight downturn in 2015 due to the falling Euro. However, the Rugby World Cup in 2015 led an increase in occupancy with many hotels experiencing a fantastic occupancy level for the six-week period of the tournament.

Good growth in 2019 predicted

There are some good expectations for 2016 from analysts and experts who predict a strong year albeit at a slightly slower growth rate than compared to recent times.

It is predicted that marginal occupancy will see growth of 0.3% meaning occupancy will be at 84%.

Regional outlook

Unsurprisingly, many of the best growth for hotel occupancy comes from London. However, the regions have also experienced a very good-year-to-date.

Many of the main cities and towns around the country have experienced consistently strong growth with double digit growth at cities such as Birmingham, Liverpool, Southampton, Belfast, Bristol, Nottingham, Plymouth, and Coventry.

It is predicted that growth in 2019 will grow to 0.6% occupancy growth taking occupancy to 77%.

 

Hotel room investment

With such strong growth in London as well as the regions, investing in hotels has become a good addition to the investment portfolio.

Although investing in a full hotel may not be possible, the alternative of putting your income into a room is a strong viable alternative.

With income returns of almost 7% to 8%, putting your investment into a hotel room is a good way to gain residual income.

Furthermore, the added incentive of it being a hands-free investment as the hotel management firm look after the maintenance of the room, it means this is a good high yield returning product.

With the added bonus of 52 days free accommodation, investing in a hotel room can be a case of mixing business with pleasure.

If you want to find out more about investing in hotel accommodation, speak to one of our team at HE Global Investments by calling 0207 096 0125 or email on: info@heglobalinvestments.com

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