New to hotel room investment

Discussion in 'Property Investment Strategies' started by samuel.Rod, Jun 22, 2016.

  1. samuel.Rod

    samuel.Rod New Member

    I’ve been looking at a buying hotel room investment off-plan and wondered if there is any benefit to choosing a specific unit in a specific location (eg. Buying on the top floor or corner unit, etc.)
     
  2. KGeeson

    KGeeson Property Forum Staff Forum Partner

    I think if you can get any 'extra benefits' from a room (that doesn't cost you more) then definitely go for that unit. For example, one might be slightly larger, be situated in a quieter corner of a hotel, have a better view, etc. Think about the end user ultimately. What would appeal to you more if you were staying there? I'd go and visit any site and get a real feel for the place and potential unit options.
     
  3. nmb

    nmb Well-Known Member

    I totally agree with the comments from @KGeeson because nothing beats actually seeing the investment you are buying as well as the area. By choosing the best room location, etc this may increase your annual income slightly but over a long period it can soon add up.
     
  4. Michelle Barringer

    Michelle Barringer Member Forum Partner

    I agree with the above - however if you have a fixed return and exit strategy then it is less important. It also important to ensure that the hotel operates a good booking system to ensure that all rooms are booked in a good rotation
     
  5. Luke Masters

    Luke Masters Member Premium Member

    Exit strategy is also key for your decision, if you have a unit which has a better view or more useable space not only will this be better for the end nightly user occupation levels. But also should you look to sell the unit at any point, it will give you a better chance of securing the price you are looking for.
     
  6. Judith Beilby

    Judith Beilby Member Premium Member

    The contract terms will dictate the way returns are calculated and the actual room selection is only important if the room occupancy is dependant on returns to the investor.
    However if you have a choice then corner rooms, best views and top floors are always worth selecting.
     
  7. nmb

    nmb Well-Known Member

    Does anybody have any experience of hotel room investments? I would be interested to see how the projects actually work because sometimes they seem too simple with very little in the way of risk.
     
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