Hotels can be a great investment, especially if you’ve already got a lot of money lying around, says Ben Williams, founder of boutique hotel and leisure services provider Amtex.
“Hotels can save you a lot on a lot things.”
He points out that if you have enough cash lying around to buy a cheap property or rent one, hotels can also offer a lower upfront cost.
The most obvious reason to invest in hotels is to save on rental rates, which are typically higher for hotels than for other rental properties, but Williams says that you also want to avoid buying properties that you might be tempted to resell, especially as prices are generally lower.
Williams says hotels can be very cheap in part because of the fact that they offer a “low rent” option, and also because the majority of people don’t stay in hotels long enough to save an amount.
“Most hotels don’t actually last long enough for you to make any real profit, but it’s still very affordable.”
So, whether you’re looking to rent or buy a hotel, the best way to go about it is to keep tabs on the supply and compare prices.
Williams points out, for example, that the average occupancy rate in a hotel room is only 20%, but he says that this is still much higher than the rate in other rental and camping properties.
To find out more about hotel supply and costs, check out our guide to the best hotel deals on the market.