Investing in hotel rooms

Investing in hotel rooms is an option that not many people have heard of. Nevertheless, it is an investment option that is actually becoming more popular by the day. There are several reasons for this. So let's take a moment to look at why investing in hotel rooms is a good idea and what you need to consider when you decide to do so.

Why invest in hotel rooms?

Let's start by looking at why investing in hotel rooms is becoming increasingly popular these days. This will give you a clear indication of why such an investment is a smart way to grow your capital. All in all, it comes down to the following reasons:

• Extensive returns: Extended return is a somewhat special term, which immediately requires some more explanation. With this term we refer to the fact that there are several sources of income regarding this investment. This has to do with the other things that are involved with a hotel. Think of the provision of meals, the service and the rental of other facilities and spaces. The hotel puts all these in one pot and then distributes them among the owners of the various hotel rooms. This way, it is a clear diversification of your income sources. The return does not only come from the income of the hotel room itself.

• Large selection: There is a relatively large supply of hotel rooms. In almost every country, you can find thousands of hotels. In countries like the Netherlands and Belgium, you have countless options in every major city. People generally queue up to book a room. Especially when we are near holidays or in the spring or summer months. As an investor in hotel rooms, you benefit from this large supply. It means that you have a lot of choice when it comes to your final hotel room.

• Carefree investment: Moreover, investing in a hotel room is a fairly carefree investment. You do not have to do any work yourself. This is a misconception that is sometimes still present. All the work is done by the staff present in the hotel. Think of the cleaning of the room, keeping track of all costs incurred and making repairs when necessary. As the owner of the hotel room, you don't have to worry about any of this. You just wait quietly until you get paid. All you have to do is come up with enough capital. There are countless ways to get this done.

• Remains popular: Finally, it is worth noting that hotel rooms are likely to remain as popular as ever. Over the past few decades, there has always been an upward trend in the demand for hotel rooms. People increasingly have the means and the desire to discover new places. Even if it is only in your own country. This is exactly what you want to hear as a potential investor in hotel rooms. It means you are minimising your risk.

What to consider when investing in hotel rooms?

Do you feel like investing in one or more hotel rooms? Then it is important to take a number of points into account. Not all hotel rooms are equally good investments. Therefore, try to keep the following things in mind when making your choice:

• Determine optimal location: When it comes to picking the right hotel, there are numerous things to consider. One of them is determining the optimal location. On the one hand, this includes the city or area. For example, is the hotel near a popular nature reserve? Or is the hotel located in a city that always attracts many tourists from home and abroad? Both are important factors regarding the popularity of the hotel. The better the location, the more your investment will eventually yield.

• Determine budget: It is also a good idea to determine your own budget as soon as possible. Preferably before you start looking for possible hotel rooms. Not only will you avoid unnecessary disappointments, but you will also get a better idea of what you can expect in terms of income. And with what investment objective are you going to invest in a hotel room? Do you want to sell it for a profit within a relatively short period of time? Or is the idea to keep the hotel room for years? All these things will eventually give you more overview.

• Reliability of hotel: The reliability of the hotel also plays a role. Is it possible to find out about other investors who have invested in such a hotel room? And what are the general reviews of the hotel in question? These things will help you get a better idea of the hotel as a whole. For example, how they treat their guests, what they have to offer and therefore whether it will be a good long-term investment.

• Occupancy rate: Finally, there is the occupancy rate. This is a crucial part of a hotel room investment. The expected occupancy rate will determine what your final profit margin will be. It is important that the occupancy rate of your hotel room is as high as possible. That means that throughout the year, as many people as possible decide to book your room. This will make your investment as profitable as possible.

Invest in hotel rooms with Immotokens

So investing in hotel rooms has many advantages. On the other hand, there are a lot of things to consider. It is not simply a matter of buying the first hotel room that comes along. Would you like to make it as easy as possible for yourself to make a good decision? Then investing in hotel rooms with Immotokens is very interesting for you. Investing in real estate has never been so accessible. Find out here how you can become a full-fledged property owner with Immtokens for as little as €50!