Your guide to investing in resort hotels - Why Invest in Resort Hotels?

Resort hotels offer a lifestyle investor a very reliable solution to both enjoying a premium resort hotel room for holidays as well as achieving excellent capital growth and income when they are not using their property.
Resort hotels provide the ultimate in tangible investments with high net yields, excellent locations and excellent resort facilities.
Typically Resort hotels can take a number of years to establish them selves. In most cases it is typical for the developer or operator of a Resort hotel to provide a rental guarantee period of 2 to 10 years.
Following a period of guaranteed rental, properties are then typically placed into to a room rate share scenario which entails the property owner receiving 50% to 60% of the room rate. At this point the higher the occupancy level of the hotel the higher the net yield the owner receives.
Resort hotels provide net yields typically higher than traditional buy to let properties.
Resort hotels often align themselves with well known lifestyle and leisure brands.
Larger scale resort hotels particularly on islands such as those in the Caribbean have support from local authorities and the government. Resorts of this nature bring employment opportunities to the local area which in turn stimulates the local economy thus bringing prosperity to the area.
Investors in resort hotels can benefit from concessions negotiated by the developers such as reduction in property taxes and purchase costs - something you will not benefit from by a private residential purchase.
Developers of Resort hotels typically have an ongoing interest in the hotel resort itself once fully operational. With this in mind investors can be sure that the resort will be completed to the correct specification as opposed to some incidents with private apartments not being completed to standard. Final touches such as landscaping of the gardens will all be completed. As without the required finish, the Hotel resort cannot open which is neither in the interest of the hotel operator nor the developer.
The hotel operator will utilize their global marketing initiatives and global online booking systems ensuring high occupancy levels.
Resort hotel room owners need to dedicate very little time to their investment. They are not required to find a management company and letting agent for their property. For private apartment owners, even with these arrangements in place, with the level of marketing carried out in this method often results in much lower income and occupancy levels than Resort hotels.
Reselling resort hotel rooms could also be quicker and easier than residential property due to their dual appeal as both an investment and a lifestyle property for personal use. In addition, banks see resort hotel rooms as very low risk in terms of lending namely due to the involvement of a hotel brand and the high profitability of the property, so an end buyer could finance the purchase of the resale property if required.
There are various types of properties available from studios through to 6 bedroom villas and typically include all furniture and furnishings.
HM Revenue & Customs (HMRC) class certain resort hotels as a viable investment choice for a Self Invested Personal Pension (SIPP). Which means investors could use pension funds to buy property (No personal usage is allowed for SIPP investors)

Resort Name: Two Rivers
Country: Dominican Republic
Hotel Group: Oasis Hotels
Prices From: £95,000
SIPP Provider: Rowanmoor Pensions, Hornbuckle Mitchell, Westerby...
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