The needs of business and leisure travelers are constantly evolving. For example, in recent years, the serviced apartment industry in Dubai has grown more than any other temporary accommodation class. This results from globalization, the need for workers to travel more frequently, and holidaymakers' requirements to suit new family dynamics.
To meet this need, Dubai developers are becoming increasingly knowledgeable about a new style of accommodation that combines resorts, hotel rooms, and typically serviced flats. Apart-hotels are completely furnished flats with amenities similar to hotel rooms that can be utilized for short or long-term stays. The advantages of a serviced apartment over a hotel room are increased privacy, flexibility, and space. In addition, with apart-hotel rooms in resorts, families can experience a more home-from-home holiday. Also, many investors prefer this type of investment because of its hassle-free way of earning income. It’s a hands-off investment.
This blog will consider the basics of an apartment hotel room investment in Dubai and the advantages of such a specialist investment. The risk is low with a low entry price, regular income, readily available advice in the marketplace, and research at your fingertips.
A hotel room investment can provide you with regular passive income and an exit plan that can provide you with a lump sum return when you decide to sell. You may enjoy the consistent, passive rental income and the lump-sum gain on departure as an investor without making any effort - they are genuinely hands-free investments! As an investor, you just make a payment and then sit back and collect your guaranteed profits because everything is maintained on your behalf.
A hotel room investment is an excellent method to turn your savings into a consistent income and improve the health of your finances by investing in serviced and fully-managed property while preserving and even expanding your initial lump amount. These opportunities make great investments because they can give you an average yearly yield of around 10%.
Unlike traditional buy-to-let properties, where landlords seek long-term renters prepared to deal with uncertain rental market price hikes, hotels cater to visitors who stay for a short period but are willing to pay one-time hotel prices during their vacation or business trip.
Many investors are afraid to engage in residential buy-to-let because they are concerned about whether they will be able to find tenants. At the same time, hotel rooms will always be in high demand, especially in Dubai, where tourism is increasing. Many people have this experience when they try to book a hotel room at the last minute and discover that none are available for the dates they want.
The hotel owner will commission a professional management company with an excellent track record to ensure the hotel's success.
You may wonder, "if hotels are so successful, why do they need private investors to buy apartments?”
The explanation is straightforward: it is a business. To raise financing and build capital, hotel owners will offer to buy let apartment hotel rooms to investors. As a result, most hotel investments include a buy-back option in which investors can resell the room back to the owner for a fixed percent above the original purchase price after several years, ensuring capital appreciation a
nd consistent rental revenue.
• A desirable fixed rate of return is usually guaranteed.
• Apart-hotel rooms provide the same security of ownership as traditional property and yield consistent returns.
• The investor has no risks to the management of the hotel, including maintenance.
• Hotel rooms can be allocated for personal use in some cases: many investors and management businesses agree on a term for the investor to enjoy his investment.
Apart-hotel rooms investment in Dubai is an excellent opportunity for investors looking to generate income and earn a return on their investment.
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