investing in hotel property Spain

The first step for smart investing in Spain, is getting the right information for the right investment.
Which investing fits my profile best? We at Hospitality Spain make you steer towards the right investing for top returns!

The concept of investing in hotel rooms comes over from America.

The world-famous hotel group Marriott was a trendsetter.

Big names like Hilton and InterContinental quickly followed and so hotel room buying has been very popular in the US since the late 1990s.

In our region, Accor and IGH, Europe’s largest hotel chains, Radisson Blu and Holiday Inn are very familiar with offering hotel rooms for sale.

Hotel rooms are a popular alternative to classic investment products.

Unlike investing in Spain in a flat or house, investing in hotel rooms offers some additional advantages:

Professional operator: Those who invest in hotel rooms hand over the operation.
As an investor, this saves you a lot of headaches.
So you don’t lie awake over defaulters or rental damage.
Fixed return: You are virtually guaranteed a return.
This is because you will receive revenue from the entire hotel, including income from the restaurant or bar or the rental of meeting rooms.
Own use: At a steep discount, you can book an overnight stay at the hotel you invested in.
Return expectations

The high return on investment in a hotel is partly due to the daily maintenance of the property.

As a result, it retains its good condition and thus its audience for a very long time. A stable and well-run hotel focuses on multiple target groups during weekdays and weekends: business people, tourists, families with children … A solid management agreement with a strong brand such as ibis, Mercure, Radisson or similar guarantees the professionalism of the hotel.

Investing in hotel rooms is carefree
Those who start investing in a hotel hand over all the work to a professional operator. Private investors therefore do not have to personally inspect properties, as is the case with classic real estate.

Central management is in the hands of a professional management team and consequently there are never any problems with defaults or rental damage.

Buying hotel rooms offers security and safety
Investors usually get a fixed percentage of the profits from the entire hotel, including the restaurant, bar and meeting rooms.

Usually, this percentage is between 75 and 90%. With most hotel investments, there is a pool system: here, it is of no importance whether your room or the one next to it is rented out.

Many operators pay out quarterly advances on profits.

Investing in a hotel offers high long-term returns
The basic return on hotel rooms is higher than for classic flats, shops and offices (Source: ING Bank study on the marketability of hotel real estate, November 2007).

With a good