Overseas property website Homesgofast.com is now featuring Aparthotels in response from demand from its credit squeezed investors. The international real estate website which carries some 100,000 properties is now making Aparthotels part of its inventory as investors move toward this type of investment.
Aparthotels also known as Condo hotel or even ‘condotel’ are gaining in popularity with international property investors. Aparthotels are typically a three-star or higher hotel property with a management company that takes care of all the hassles of ownership, including maintenance and finding hotel users. They typically offer the investor the opportunity to own a plush hotel room that can provide a monthly income.
Nicholas Marr of Homesgofast.com ‘The demand for Aparthotels is on the increase with investors specifically requesting this type of investment property. Many of our investors are aware that like any other real estate location is the key. The advantage of buying into a hotel in London for the 2012 Olympics or one with stunning sea views is obvious. Some Aparthotels are offered by large hotel groups and mean very little effort from the owner these elements seem to make investors feel happier to invest’
The Daily Telegraph in a recent article: Aparthotel:Room service offers more than just a smile highlights the attraction of the new type of investment. One buyer Brian Gillespie explained that he bought three one-bedroom suites in Park Plaza County Hall, SE1, and was in the process of buying three more at 1 Westminster Bridge, the 14-storey hotel due to open in 2010.
The investor said ‘”I expect the price of my hotel rooms to rise faster than the general London property market because there is a shortage of hotel rooms in London. The Government’s own figure shows an 85 per cent occupancy rate.”
Richard Latham, of The Buying Solution, says that he would need to do extensive research before advising clients to invest in hotel rooms.
“I’m sceptical. What happens if the hotel goes bust? What happens if a hotel room is repossessed? What happens at the end of 10 years when the building looks a bit tatty? Who pays for the renovation? What is the second hand market like and how do you sell your room? I’m a bit nervous about lack of flexibility.”
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