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5 reasons to opt for a resort investment
April 29, 2016Article by Charlotte Ashton
Hotel and resort investments are a popular choice for many investors who are seeking to turn their pounds into profits overseas. Here, specialist property investment company Property Frontiers’ CEO Ray Withers shares his thoughts on what makes resort investments so enduringly popular.
5 reasons to invest in a resort
- 1. Predictable returns
One of the strongest appealing factors about a resort investment is the potential for predictable returns. Investors have a wealth of information at their fingertips to assess the potential of a hotel, from international visitor numbers to occupancy levels/demand for existing resort accommodation in the area. This provides an excellent picture of the potential of a new resort when it comes to generating returns.
- 2. Stress-free asset management
Not all investments manage themselves, but with a resort investment you can relax and let the professionals do the work. The hotel will be fully managed without causing the investor any hassle whatsoever – it’s the ideal armchair investment.
- 3. Economic resilience
The hospitality industry is often able to weather economic storms that other types of investment are susceptible to (as the commodities sector is currently demonstrating so admirably). We’ve often seen that a country’s economy can suffer without its tourism industry being impacted, which makes a resort investment particularly attractive. Beaches are sunshine are just as attractive whether a country’s GDP is increasing or decreasing!
- 4. Low risk
While all investment carries some risk, hotel investments are lower risk than many other asset classes. Hotels are generally built by large, respected developers and managed by professional international companies. Investing in a global brand brings with it a certain degree of reassurance, which is excellent news for cautious investors who are keen to make a profit with a minimal level of risk.
- 5. Personal use
Unlike many other types of investment, a resort investment offers the incentive of personal use. Hotel rooms often not only generate financial returns but also provide the investor with an idyllic location in which to holiday for several weeks of the year, with no accommodation cost to think about as the investment has already taken care of that aspect of the vacation.
For more information about investing in resort accommodation in a range of carefully selected destinations, contact Property Frontiers or call +44 1865 202 700.