Looking to invest in hotel rooms? A few things to consider

It sounds like a great deal—rather than buying a whole property or forming a JV to own a hotel outright, potential investors can buy a room in an upcoming development and collect a percentage of the income generated by that room’s rentals. And that’s it. If everything goes right, it’s a win-win proposition: The project is funded by numerous individual investors and those investors make a tidy income without the mess of partnerships or management responsibilities. The hotel management company handles the daily operations of the property, The initial expense can be much lower than buying a full hotel, but the rewards—over the long-term—can be very positive.

Of course, things can go wrong. The investor’s profits depend on the hotel’s RevPAR, and if that drops, so does the return on the investment. And any number of factors can affect RevPAR: Sporting events, economic downturns, terrorism fears and natural disasters can all affect profitability—sometimes positively, and sometimes less-so.

Real estate and investment taxation options vary greatly. Be sure you know what you’ll have to pay back. Tax efficiency is a major benefit when it comes to investing in hotels. Since hotels are ranked in the same category as commercial properties, there are many tax-efficient opportunities available which means additional returns on your investment.

You can opt for a buy-back that is usually guaranteed, as long as your investment is over a certain period of time. With this arrangement, you will sell the property at a profit, on top of the returns you will have made during the entire period.

Still interested? Contact us today, we have some exciting developments in the pipeline starting from £65,000.00 with ROI of 7% assured for two years with a 105% buyback option after the initial term.

We are proud to announce we are finalists in The Regional Business Awards 2016

After the incorporation of Evolve Group and then the successful transition from electrical contractor, to maintenance company then progressing into property development and more recently in 2016 property investment and management services we are proud to have been recognised for all the hard work our team has produced and proud to be attending St Georges Hall in Liverpool on 23rd June for the black tie ball along with  other amazing companies and  finalists in this years Regional Business Awards.RBA_logo_2016_finalist

Not everything always goes to plan, I have had my fair share of ups and downs over the past few years, but all of this is helping me learn, develop and progress in the right way. I’am learning everyday and love it, it can be frustrating at times working on particular problems, banging your head against the wall and seeing little or no progression, but this all part of the journey. I feel it’s about creating something sustainable that will continue to grow and prosper for many years to come including the hope that once our children grow up to leave school we can bring them in to the businesses in some form ( if they want to!).

My vision when I incorporated Evolve and still is today, was to create a group of companies and businesses trading in different environments that could compliment each other and help each other grow. At the point of company formation we were an electrical contractor working on student properties and on property refurbishments. There is one thing that sticks out in my mind during these times, there was a company who had enlisted our services to carry out maintenance works in the student quarter of Liverpool.  I was still supervising the team I had started to employ and I met a representative from the company enlisting us who wanted to show an electrical fault in a tenanted property. When we met outside the door, he knocked and introduced me to the tenant, not as “the electrician” or by name, but “This is Evolve Group”, with a slight snigger in his voice. It felt like a personal insult at the time for using the word “Group” in the new company formation, and I was slightly taken aback by this comment as we had been working together for quite some time and had a good working relationship with them, or so I thought. To be honest,  I felt a little embarrassed as I felt he had made a mockery of the vision I was working hard to create without knowing anything about it.

I knew then that I would succeed in creating what I had visualised because I was determined and focused, I wanted enjoy what I did everyday and prove people like this guy wrong. Although not there yet, the journey is progressing well and as the old saying goes “if you enjoy what you do you will never work a day in your life”. 

My point is to talk positively to your inner self… don’t let anyone damper your vision, how big it may be, how outlandish other people say it is, because your idea or vision could be the next Google or Apple. You may fail at first, but so what, failure is the biggest learning curve I have ever experienced, you will learn and grow from it.

Never let anyone tell you “you can’t do this” or “you won’t be able to do that”, people say things like this because they see their own limitations and don’t have the guts to put everything on the line and go for it themselves.