HOTEL ROOM INVESTMENTS
BEAT THE CREDIT CRUNCH
Investors seeking an alternative to more traditional property or stocks and
shares type investments are moving in increased numbers towards a new
growth area – The Hotel Room Ownership Concept.
These are the findings from leisure industry consultant, Alan Fellows who
said; "Hotels are being widely recognised as one of the best performing
property asset classes available and despite the current economic climate and
uncertainty over property prices the hotel industry in particular is set to
benefit over the next few years."
Alan is currently working with Holland Hall Country House Hotel in
Upholland, Lancashire, which is a privately owned hotel. Rather than sitting
back during the credit crunch, the management are continuing to develop the
30 bedroom hotel and restaurant complex, adding more rooms and
developing the restaurant and bar areas, introducing all day dinning for a
range of customers.
After looking for additional ways to raise the funding themselves, they are
now one of the first hotels in the area offering their hotel bedrooms for sale.
Alan added; "Whilst initially the idea may sound omplicated, the reality is
that it is a very simple transaction to carry out.
"It is easier in many ways than buying any other type of property or stocks
and shares. The legal details are not only taken care of for you, they are
actually included in the price.
"For people looking to invest in Holland Hall Hotel you are even guaranteed
a return on your investment for the first three years and this is currently
greater than many financial institutions are offering.
"A number of companies are offering this type of investment when the
actual rooms have not even been built but Holland Hall Hotel has the
properties ready and available for people to view."
"Another advantage of this type of investment for individuals is that there
are a number of tax benefits relating to SIPP's and SERP's and we would
insist they must seek their own independent financial advice regarding this."
"There is also an alternative way to purchase a room, if an individual finds
the cost a little prohibitive; they can look to `Fractional Ownership' as the
way forward. This enables a group of individuals to pool their financial
resources together to purchase the room and split the `free room nights and
the returns equally between them all."
When asked about what type of people this will appeal to, owner of Holland
Hall Hotel, Ron Jones replied; "There are a whole host of people who are
already interested in buying hotel rooms – some people buy for pure
investment and return purposes whilst others see it as an alternative to
purchasing buy to let homes.
"In addition to these, football clubs and many companies for example, own a
number of properties for players and/or staff to use but in doing so they have
the added hassle of the looking after the security, monthly bills and any
repairs. Buying a hotel room enables them to gain the same if not more of
the financial benefits and takes all the maintenance work away."
Holland Hall Hotel has already had a great deal of interested from potential
investors and in response to this is holding a special open weekend on
Saturday 29th and Sunday 30th November. Anyone wishing to book an
appointment during this weekend or would like further information should
contact: Alan Fellowes on 0777 903 4973 or come along to the hotel on
those dates.
It is also hoped that the success of these sales will enable the hotel to
diversify, setting up a new company offering other hotel owners advice on
how to generate investment through the assets they already hold.
Ron Jones explains; "It has taken us a great deal of time to research all the
legal and financial details but now we have all this in place and know that
there are many other hotels looking to follow suit, we are in a position to
help them and they can learn from our experience."
When asked the direct question; "Just how much is a hotel bedroom?" the
answer was a stunningly low £105,000 which includes 14 night usage, spa
membership, golf packages, valuation fees and legal fees up to £1,000 on top
of a guaranteed return of 8.25% gross for three years.
ENDS
Media enquires to:
Louise Holcroft
Freedman Brown Communications Ltd.
Tel: 01772 554300