The number of tourists in the UK hit 40.9 million visitors in 2019.
In total, tourists spent 290 billion nights in hotels in the UK last year, and this can be felt the most when trying to book a hotel room in the UK last-minute. Often most hotels are fully booked and demand far higher rates than any other kind of accommodation. Hotels’ high rates are one of the main reasons why hotel investments can offer investors such high yielding returns. Sterling Woodrow can offer returns of 10% and above, assured for five years with a built-in exit strategy.
According to JLL’s Hotel Investment Outlook 2020, the UK is expected to take centre stage and earn profitable gains in hotel investment activity in 2020 and beyond. This is due to the opportunity for moderate yield compression in certain markets and the significant level of capital seeking to invest in real estate in the UK. In our post-COVID society, many Brits will opt to holiday in different parts of the country in fear of travelling abroad which makes the market even more attractive to potential investors.
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Types of Hotels for Investment
There are two main types of hotels that investors can invest in.
Luxury, lifestyle & boutique hotels
Catering to an affluent market who will readily pay a premium for a more luxurious experience. Boutique hotels in the UK are expected to see a surge in interest due to Brits wanting to stay local for holidays post-COVID.
Affordable & budget hotels
These have the benefit of being fully occupied for the majority of the year for business trips and vacations. The rise of affordable lifestyle hotel brands are a key market trend for 2020. Savvy investors should be aware of these emerging disruptors.
Here at Sterling Woodrow, our area of expertise lies within the PBSA property market. The PBSA property market is one of the most lucrative investment types available at the moment. They represent a highly manageable asset class which can be a successful investment strategy for first-time investors looking to establish their portfolio, or experienced investors looking to diversify.
The Sterling Woodrow Offering:
Hands-off Investments
Our senior portfolio managers handle everything whilst you receive your return on investment
High Yield Returns
Generate returns of up to 10% assured for up
to 5 years.
Capital Appreciation
Hotel room investments have the opportunity for capital appreciation over time.
What some of our clients have to say…
I’m originally from Leeds but now live in Australia working as a university lecturer. It’s always been our aim to ultimately move back to the UK so I’ve taken an interest in the UK property for many years. I’m also very aware of the lack of accommodation for students close to major universities. A friend recently put me in touch with Sterling Woodrow and it was instantly apparent that these guys knew their market so my wife and I finally decided to invest.
David Johnson
First time investing into a fully managed investment. I made an enquiry online boasting 10% returns per annum. Within a few days I received a call from one of the portfolio managers Ben, who was extremely helpful and wanted to understand more about my goals and what I wanted to achieve than actually trying to sell the product which was a breath of fresh air. I received all the info and had lots of questions regarding the Hotel Investment, all of which he answered simply and easy to understand.
James Tingley
Whether you live overseas or in the UK if you want to invest in property it’s important to find an agent that will go the extra mile for you and that’s exactly what Sterling Woodrow did for me. Although I knew a lot already it was still good to have those guys available when I needed them and it didn’t cost me anything.
Mohammed Alkhaiwani
Why Invest in Hotel Rooms?
A hotel room investment can give you regular passive income as well as an exit strategy which can deliver a lump sum profit when you decide to sell.
The price of a unit (a hotel room, or a hotel in its entirety) and the annual yield scale up better than other property types. This is because luxury hotels can charge a premium to cater to a higher standard and the added frills that add to the experience. Meanwhile, budget hotels fit in as many rooms as possible keeping their service as efficient and affordable as possible.
By investing in hotel rooms, you have the assurance of a ready-made buyer. Hotel management companies do not want to sell their rooms on a permanent basis. When signing an investment contract, you commit to selling the hotel room back to the hotel management company after a fixed term. This means that you have an assured buyer who will pay more for your investment than what you paid for it. No stresses or waiting, with your capital return when you expect it.
Hotel room investment is incredibly accessible compared to other property investments, as you have the ability to easily invest in a single hotel room. Compared to other HMO investments (houses of multiple occupancies), the capital required is much more achievable.
Discover more about the advantages, competition and risks of hotel room investment in our in-depth guide on Buying and Investing in Hotel Rooms.
Want to know more about our investment opportunities?
Book a complimentary consultation with one of our senior portfolio managers today.
Hotel Investment with Sterling Woodrow
Whether you are a first-time investor looking to understand your options and make the first steps towards building your portfolio, or an experienced investor looking for someone to effectively manage your investment, our team goes the extra mile to deliver exceptional service and results.
If you are ready to take the next step and learn more about the hotel room investment opportunities available through Sterling Woodrow, contact us today and we’ll start your investment journey together.
Hotel Room Investment FAQs
Yes; the cost of entry is much lower for hotel rooms. For the price of a typical buy-to-let deposit, you could own a hotel room. Investors can also benefit from the assured capital growth of 10% for a five-year fixed term hotel room investment.
Hotel investment is ideal for first-time investors. The income you receive from a hotel room investment is passive which means that the hotel management covers all of the responsibilities of a typical landlord, such as bookings, cleaning, maintenance and collecting fees.
Any investment that you make does pose a small risk. We always recommend that prospective investors have an experienced manager on hand to guide you through the entire process. Our team of senior portfolio managers are experienced in finding tailor-made investments for our clients in the UK and abroad.
Discover more about the advantages, competition and risks of hotel room investment in our in-depth guide on Buying and Investing in Hotel Rooms.
Yes, absolutely. Overseas investors can purchase hotels and hotel rooms in the UK, even if you do not live in the UK.