Buy to Let Hotel Rooms, North Yorkshire, Investments

Buy to Let Hotel Rooms, North Yorkshire, Investments

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Buying a Hotel room as an investment

Shrewd investors are always on the lookout for new sources of income or capital growth, or wherever possible both. In the USA and Europe investors have been buying hotel rooms for some time to gain both, but recently, with the demise of buy-to-let and off-plan property they are turning increasingly to hotel rooms.

The basic concept requires that an investor buys an hotel room and then hands over the responsibility for letting and maintenance of the room to the hotel management.

In return the investor receives half of the income from letting the room and has none of the tiresome obligations of ownership such as nding an occupier, decorating and replacing furniture when it wears out.

Investors can retain ownership for as long as they wish and then either ask the management company to offer the room for sale or place it in the hands of the same kind of reputable Estate Agent that would sell their home.

Hotels are now an asset class recognised and approved by most of the best pension funds for inclusion in SIPPS.

The advantages of buying an hotel room in a SIPP are considerable for investors with SIPP, SSAS or SERPS funds available.

Hotels

Our hotels are chosen because they attract a particular type of customer and occupation rates exceed 75% and can be improved by RIC. The Kimberley was chosen because it is immediately adjacent to the International Conference Centre and is at the gateway to the tourist area of North Yorkshire.

The RIC business model is aimed at 2-4* hotels that attract custom from demographic groups whose spending power is least likely to be affected by the financial climate (good or bad).

Expansion is through upgrading the hotel quality and introducing new custom from established business connections of RIC. The hotel has to be acquired at a price that, after refurbishment, will permit the appropriate level of return to be given to the investors.

We Manage Everything

The Management Company is responsible for taking care of the smooth operation of every aspect of the hotel services.

The investor receives a monthly account of income paid and, where appropriate, payment can be made either to his trust account or direct to any bank

Why Choose Room Investments?

We recognise that investors not only want income and capital gains but also consistency, predictability and longevity.

How Do We Deliver Income?

We choose to buy hotels that have a strong attachment to predictable, sustainable income sources that can produce room reservations up to a year in advance. We buy hotels and refurbish them at a cost that enables us to offer room rates to customers at competitive rates that encourage advanced bookings but still produce great returns for investors. We do not speculate on trophy or trendy hotels, we occupy the mid-market that has delivered consistent robust income regardless of economic conditions. On this basis we can guarantee a 10% return for the first year but all of our clients are achieving a return close to 12% per annum.

How Do We Deliver Capital Gains?

We do not rely on a rising property market, we rely on the yield from income to enhance the underlying value of the hotel bricks and mortar. Any rise in property market values is a windfall that only enhances the capital value of our hotels further, we are not reliant on it to make gains. We manage each hotel professionally and maintain it fabric to the highest standard to preserve value. A sinking fund provides the resource to repair and refurbish the hotel when required. At the time of sale an independent valuation of the room is undertaken

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