Investors ‘checking-in’ to profits
One of the USA’s most popular investments is starting to take off in Europe.
The so called ‘condo hotel’ is becoming increasingly popular with investors, claims Owner Invest, and it is it is estimated that they currently account for at least 10% of every hotel project currently being built.
Condo hotels were once reserved for the American property market with little or no interest paid by the rest of the world.
However a growing breed of overseas investors has led to a dramatic rise in this burgeoning industry especially at a time when it is essential to safeguard ones financial future.
Traditional real estate markets continue to struggle and ‘credit crunch’ headlines further dampen future expectations in this turbulent market.
The same cannot be said for the condo hotel industry which is enjoying a dramatic sustained period of growth and is recognised by an army of investors as a safe and rewarding investment opportunity.
No hassle investment?
Mark Bingham Managing Director of Owner Invest,commented: “The traditional real estate market has been hit hard in the last few years.
"What was once a sure fire way to invest for the future is no longer as attractive an option and investors quite rightly, have had to look to new markets to achieve their goals.
“Condo hotels are now making the headlines with investors seeing strong capital appreciation, good rental returns and 50% room share rates.
"What’s more is that in the high pressure world we live in and time at a premium, this is an investment opportunity that comes with little or no hassle, the hotel management company looks after everything. You could say that it was tailor made for the 21st Century.”
Condo hotels were first recognised in Miami in the early 80’s. The concept was initially slow to take off as resorts lacked any real sense of quality or prestige, however over the following 25 years the idea has grown and one has only to mention Trump, Hilton, Marriot and Four Seasons who adopted the concept to see just how much it has grown.
It is now estimated that the condo market in the US represents almost 20% of the entire US real estate market and it is predicted that with 74 million baby boomers looking to invest their money, condo hotels are expected to thrive.