The latest trend in property investment: an Apartment + a Hotel = Aparthotel
Aparthotels are typically a three-star or higher hotel property looked after by a management company that takes care of all the hassles of ownership, including maintenance and finding hotel users. They typically offer the investor the opportunity to own a plush hotel room that can provide a monthly income.
While the natural choice for a lot of the property investors in the UK would be to invest in London, with the 2012 Olympics on its way, many investors are also looking abroad at holiday hot spots where hotels rooms are in demand all year long.
This trend is still setting in but a few early adopters such as GuestInvest and HomesGoFast are already profiting from it. In their blog, HomesGoFast mention the surprising speed with which these properties sell out highlighting the MGM Grand in Las Vegas, a 576-unit condo hotel, which was expected to sell out in two years but instead sold out in two months! The Platinum, a 255-unit property in Las Vegas, also sold out in just a matter of a couple months. The reason, they feel is that the armchair investor feels secure in this type of development and one that appears to look after itself.
As for us, we think only time will tell. In the current property climate one has to tread with care. The lack of flexibility, the concept of selling a hotel room to another buyer, renovations, and most importantly chances that the hotel might not do very well might make Aparthotels a less exciting proposition than it seems at the moment.
Aparthotels are typically a three-star or higher hotel property looked after by a management company that takes care of all the hassles of ownership, including maintenance and finding hotel users. They typically offer the investor the opportunity to own a plush hotel room that can provide a monthly income.
While the natural choice for a lot of the property investors in the UK would be to invest in London, with the 2012 Olympics on its way, many investors are also looking abroad at holiday hot spots where hotels rooms are in demand all year long.
This trend is still setting in but a few early adopters such as GuestInvest and HomesGoFast are already profiting from it. In their blog, HomesGoFast mention the surprising speed with which these properties sell out highlighting the MGM Grand in Las Vegas, a 576-unit condo hotel, which was expected to sell out in two years but instead sold out in two months! The Platinum, a 255-unit property in Las Vegas, also sold out in just a matter of a couple months. The reason, they feel is that the armchair investor feels secure in this type of development and one that appears to look after itself.
As for us, we think only time will tell. In the current property climate one has to tread with care. The lack of flexibility, the concept of selling a hotel room to another buyer, renovations, and most importantly chances that the hotel might not do very well might make Aparthotels a less exciting proposition than it seems at the moment.
No comments:
Post a Comment