Aparthotel Investment - Why Invest?
Why invest in an apart hotel?
- Projected 5% income for 20 years
- Minimum Rent Guarantee from hotelier
- Money down from £34,650 plus VAT
- Studio rooms from £115,500 plus VAT
- 20% deposit on exchange protected by reputable insurer
- 70% commercial mortgages available
- SIPP qualifying
- 199 year leasehold
- Rooms fully furnished
- Hotelier responsible for all repairs, insurance and business rates
Our apart hotels come with a Minimum Rental Guarantee. This is particularly useful during the hotel start-up period that lasts for approximately two years. This is because any hotel takes anywhere from two to four years to reach its optimum room occupancy and room rates
You will be entered into a Rental Pool where you can expect to share the room revenue with the hotel, earning a percentage of turnover. The percentage of turnover will be placed into a Rental Pool. The Rental Pool will then be shared out to the owners of the apart hotel rooms in accordance with the price paid by each investor for the room. So an investor purchasing an apart hotel room at £115,500 plus VAT will receive 0.46% of the Rental Pool, resulting in the rental projection to the apart hotel investor being £6,122 plus VAT gross per annum.
Because the total revenue is shared rather than kept solely by the hotel, the hotel operator and management team is even more motivated than usual to maximise room revenues and occupancy rates to reap back their own investment. This is in effect beneficial to both the hotel and the apart hotel room investor.