Property News

UK Hotels Outperform European Counterparts to Become One of the Most Lucrative Investment Opportunities of 2012

As the top performing country of 2011, the UK’s hotel market is ripe for investment according to leading North West property investment firm Knight Knox International.

The UK hotel investment market has seen decidedly positive growth of late, with over £2.3billion worth of transactions made in the second half of 2011, according to the latest data released by Jones Lang LaSalle.

Increasingly becoming an area of interest amongst both private investors and investment funds alike, hotels offer a long-term secure income and are deemed a ‘hassle-free, hands-off’ investment, due to the lack of void periods and provision of full rental management, by either the hotel operator or the developer.

“Hotels are the perfect hands-off investment for anyone looking for a long-term opportunity in property”, comments Joe Daniels, Property Consultant at Knight Knox International.
“Investors do not need to worry about maintaining the property, unlike a traditional buy-to-let, in addition to the advantage of receiving a higher monthly rental income.”

Daniels further comments; “Our latest hotel offering is particularly unique, in that it offers investors a non-status finance package at 0% interest, something which is usually provided as a tracking loan link to the Bank of England base rate. By purchasing an existing property with a proven track record, investors can be confident that their asset is working for them from day 1.”
Hotel investments are excellent income generators and are usually cash-positive from Year 1. The recently released IPD Pan-European Hotel Performance Report identifies the UK as producing an average of 10.4% total returns year-on-year, almost 3% above the returns generated by the rest of Europe.

Designed as a long-term income generator, hotel investments also have a solid exit strategy in place, as the assurance of 10%+ net yields will always attract another savvy investor.
Minimum risk for hands-free investment and income generation, hotel investments are an excellent addition to any property portfolio.

Source: Knight Knox International
Website: www.knightknox.com


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