Hotel Room Investment for Beginners

Hotel room investment may be new to you but investing your money into property has long been a popular alternative to banks.

From buy-to-let to hotel room investment, the market is taking over from offering benefits and yields banks haven’t been able to match in years.

But what exactly is hotel room investment and is it right for you?

Signature Investments have created a quick and easy guide for those either looking to save their money away from the banks or for those who are looking to expand their property portfolio.

Hands-off Investment

Hotel room investments are the perfect choice for those looking to invest their money and not their time or effort.

As the hotel you’re investing in already has the infrastructure, you don’t need to worry about any of the day-to-day running of the hotel or management. This hands-off investment is ideal for those looking to see a decent return on their money without having to do a thing.

As opposed to buy-to-let investments, you will not need to spend the time or money looking for new tenants potentially, vetting them and dealing with maintenance issues. The hotel will ensure that the room is occupied through marketing and sales strategies, so you don’t need to worry.

Affordable Entry Levels

In comparison to a buy-to-let property, hotel room units come in at a much lower entry price but continue to offer great returns.

Investments with Signature Investments have a starting price of £65,500 making them easily accessible, even for first-time investors.

The three-step process of purchasing a unit is simple; pay the reservation fee and instruct solicitors, transfer 50% of the funds upon exchange then the additional 50% of funds upon completion of contracts.

Fully Managed

Unlike buy-to-let property investments, hotel investments are fully managed.

In the case of Signature Investments, all hotels are developed, owned and managed by Signature Living, the parent company of Signature Investments.

This means that from purchase to sales, all aspects of the hotel are run by one company.

The benefits of full management far surpass those of buy-to-let investments as there is no need to worry about finding tenants, ensuring occupancy and taking care of maintenance, as this is all taken care of. Hotel investments are truly fully managed and hassle-free.

Signature Investments at 30 James Street Hotel in Liverpool

Full Flexibility

Hotel room investments with Signature Investments are flexible for both the operator and investor.

Both the investor and Signature Investments will have the opportunity to buy back or sell back the unit between the years 3-10.

This ensures that the investor is not tied into a long contract and can withdraw their investment without complication.

Upon release of the funds back to the investor, they will receive an additional percentage on top of their yearly ROI’s, making it the perfect investment for those looking to build on their capital.

A Growing Industry

Hotels in the UK have seen a steady increase not only in infrastructure investment but in tourism levels and occupancy rates.

Signature Living is a company who are leading the way in some of the UK’s tourism capitals including Liverpool, Cardiff, Belfast and Manchester. Their hotels are experiencing their highest level of occupancy and many of their hotels and apartments have become destinations in their own right with many guests seeking out their locations as opposed to using price comparison sites to make their decision for them.

Offering a unique hotel experience, excellent customer service and competitive pricing has helped to establish Signature Living’s reputation as a market leader who continues to deliver on projects.

Investing in the UK hotel market with Signature Living

To conclude, an investment in a hotel room unit is the perfect investment for income.

The leisure and tourism industry and the need for accommodation will continue to grow and Signature Living is leading the way with a new breed of hotel which have been so successful. This has been demonstrated with hotels such as The Shankly Hotel, The Exchange and 30 James Street all created by Signature Living.

This further fuels demand for hotel rooms and underpins investment for high yield income.

Hotel room investments are one of the safest and most profitable investments that people can make. Take a look at some of Signature Investments current hotel room investment opportunities and grow your wealth today.

Liverpool is a Rental Market Hotspot

It is no doubt that Liverpool is a rental market hotspot, across the UK, the demand for rental properties remains high with the number of tenants choosing to rent privately increasing year on year.

It is estimated that nearly 4 million individuals currently rent in the UK with experts predicting that by the year 2025, 59% of 20 to 39-year-olds will be privately renting properties.

The UK rental market is strong however some cities are performing better than others; research carried out by leading credit broker, Totally Money, looked at the annual yields of UK cities, establishing the most lucrative locations for buy-to-let properties.

Totally Money reviewed the annual yields on 500,000 buy-to-let properties in Britain and their research highlighted that while landlords in London are struggling to make a decent return, those letting out properties in other UK cities were seeing a healthy return on their investment.

Liverpool was a city which came out on top with the city being crowned one of the most profitable places in the UK for landlords. From the cities thriving student population to cosmopolitan feel and great network connections, it’s no surprise the city has seen an increase in investment and popularity, ensuring it tops the list as a rental market hotspot.

Top 20 Rental Market Hotspots

Buy to let chart

Areas such as Kensington, Edge Hill and the city centre are hugely popular with students and millennial tenants who work and study in the city, boasting flexibility with their rental options.

The study found that landlords in the city of Liverpool can enjoy returns of around 12.63%, which is high compared to London’s SE1 area where landlords see an annual yield of just 2.36%. The table below highlights the top postcodes for rental returns with Liverpool boasting the top 3 places with L7, L6 and L14 areas with three more Liverpool postcodes featuring in the top 25.

The Development of Liverpool

The demand for high-quality rental properties in Liverpool is set to continue for years to come with the number of investment and development in the city continuing to grow ensuring it is a rental market hotspot.

Major areas of the city are currently under development from the North Point development at Pall Mall to Wolstenholme Square and Liverpool Waters there is plenty for investors to be excited about.

Investors with properties in the city are achieving higher yields than anywhere else in the UK. This is thanks to the combination of low average home prices at £122,283 and strong rents at £1,021 per month, making Liverpool the perfect place for investors looking to make a decent return on their investment.

With rental yields averaging 8% in the city, it’s no surprise why many are choosing to invest their money or savings into Liverpool opposed to the traditional method of putting their money in the bank.

People are fed up with their savings earning so little sat in banks that they’re looking for alternative ways to a) keep their money safe and b) enjoy a decent return.

Buy to Let UK chart

Signature Investments

Signature Living is one of the UK’s most exciting property developers and operators having started with a single apartment in Liverpool city centre in 2008. Almost 10 years later the group have developed several award-winning hotels and changed the way developments are funded, choosing investor-led backing over bank loans.

Each hotel room & residential apartment is sold to investors, earning an impressive return with the added benefit of flexibility, meaning the investor or developer can buy back the unit between years 3-10 at a generous rate.

Liverpool is a city which continues to grow with visitor numbers and student population increasing year on year. The property market in the city continues to be impressive and the inward investment and current developments underway is a positive forecast for the future of the city.

To discover more about Liverpool as a rental market hotspot, and to become a part of Signature Living’s success, call one of our sales advisors today to find out more about our latest investment opportunities in the UK’s leading rental hotspot.

The Waring Hotel