How to Buy Hotel Rooms – A Beginner’s Guide
Although it might seem odd to ask this question, how does one buy hotel rooms? Let's begin at the beginning. Experiential hotel developers have used private and bank finance for the financing of high-end projects. These developers allow private investors to purchase hotel rooms in these high-end developments much like you would buy any other property. You can find the amazing hotel rooms at Marina Shores Hotel in Dana Point.
You can reap the capital appreciation the same way you would if you bought a property, but with two additional benefits. First, purchasing a hotel room is an investment in buy-to-let – without the need to find tenants or manage ongoing needs. You earn a portion of the room rate as the hotel attracts guests. This can help you pay your mortgage and possibly make a good profit.
You don't have to rent your own hotel room, but you can share in the success of the hotel and the suites. This allows you to offset your individual exposure and makes buying hotel rooms to rent attractive compared to renting individual properties.
As an investor, you will also be able to use your suite for a set number of days each year. This means that you will have a luxury holiday home for as long as 8 weeks per year. You won't need to worry about who's looking after it. Buy to let hotel rooms can be purchased via SIPPs and other personal pension investments. This allows for tax-free capital growth as well as earnings.
Investors who are looking to purchase hotel rooms will be most attracted by the fact that the manager and developer of the hotel are responsible to ensure that all rooms are occupied and that the property is maintained to the highest standards.