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  • Commercial Property

    Hotel rooms as investments

    Hi,

    Has anyone invested in hotel rooms who can provide some insight, do's and don'ts, pitfalls?

    An example of a recent hotel deal i saw is the below (although there are many like this).

    • Manchester Hotel already up and running on 87% occupancy.
    • Selling hotel rooms to renovate, 87% occupancy is currently pre-renovation.
    • 52k starting investment.
    • Immediate returns of 10% assured 5 years.
    • Guaranteed buy back at 120% in 5 years.

    This seems pretty attractive, when you compare ROCI yields on vanilla BTL as its not that easy to get 10% +.  There is no stamp duty, complete hands off investment, some of them offer 2 weeks use on any of their properties which could easily save you £1k per year on holidays.

    I believe these places are not mortgageable, but (assuming i am not missing something) i'd rather drop 50k on a hotel room at these returns than 30/35k on a BTL and more or less get the same ROCI and a much bigger headache.

    Really appreciate everyone's thoughts.

    Thanks in advance.

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    Hi Tobs,

    We have a number of threads on this topic already, such as this one >>> Are hotel room purchases a good deal? 

    ​Hope that helps for starters?

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    Perfect thanks.  I am doing a lot of research online also but do love to hear from real people,

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