{"id":1433,"date":"2016-10-23T07:00:11","date_gmt":"2016-10-23T06:00:11","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=1433"},"modified":"2016-10-23T07:00:11","modified_gmt":"2016-10-23T06:00:11","slug":"uks-hotel-sector-next-big-property-investment","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-us\/news\/uks-hotel-sector-next-big-property-investment\/","title":{"rendered":"Is the UK\u2019s hotel sector the next big property investment?"},"content":{"rendered":"<p><strong>Short-term economic uncertainty, political uproar and frustration\u2026 these are definitely three things Britain\u2019s Brexit vote kicked off. What it also brought, however, is a weak pound and a big interest from European tourists.<\/strong><\/p>\n<p>The country\u2019s decision in the EU referendum to leave the Union once and for all has led to a dramatic drop in the value of the British Pound, leading a lot of European tourists to cease the opportunity and spend a couple of days in the country that\u2019s just decided to divorce them.<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"qCss7J2nFE\"><p><a href=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2016\/10\/12\/septembers-rent-update-price-growth-eases\/\">September\u2019s Rent Update: Price growth eases further<\/a><\/p><\/blockquote>\n<p><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;September\u2019s Rent Update: Price growth eases further&#8221; &#8212; BuyAssociation Group\" src=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2016\/10\/12\/septembers-rent-update-price-growth-eases\/embed\/#?secret=FuZdJM8Tyj#?secret=qCss7J2nFE\" data-secret=\"qCss7J2nFE\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>PwC <a href=\"https:\/\/www.pwc.co.uk\/assets\/pdf\/uk-hotels-forecast-2016.pdf\" target=\"_blank\" rel=\"noopener\">picked up on this trend<\/a> and has published a study predicting an occupancy rate of 77% in rural <a href=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2018\/01\/09\/considering-investing-hotel-market-business-booming\/\">hotels for 2017.<\/a> On top of that, the study revealed record occupancy levels for rural hotels for this year and a 2.3% revenue per available room regardless of any mentions of economic slowdown.<\/p>\n<p>With a series of changes already made to traditional buy-to-let investments (i.e. <a href=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2016\/10\/15\/will-build-rent-experience-tax-cut\/\" target=\"_blank\" rel=\"noopener\">stamp duty surcharge<\/a>) and more to come (i.e. changes to tax relief), savvy investors might start shifting their focus slightly.<\/p>\n<p><strong>Hotel investments are a niche in the investment market, one that might well be worth a consideration.<\/strong><\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"KI4qfYe8Vf\"><p><a href=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2016\/10\/08\/renting-property-uk-become-first-choice\/\">Why renting property in the UK should become a first choice<\/a><\/p><\/blockquote>\n<p><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Why renting property in the UK should become a first choice&#8221; &#8212; BuyAssociation Group\" src=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2016\/10\/08\/renting-property-uk-become-first-choice\/embed\/#?secret=I1Ntpc4FIl#?secret=KI4qfYe8Vf\" data-secret=\"KI4qfYe8Vf\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>But what about long-term goals? Will the hotel trend only last while the pound is weak and soon all these hotel rooms won\u2019t be needed anymore and the seemingly <a href=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2018\/04\/03\/hotel-investment-32-last-year-regions-overtaking-london\/\">hassle-free, hands-off investment<\/a> turns into a well-hyped, but little thought-through flop?<\/p>\n<p><strong>First of all, PwC\u2019s hotel forecast for 2016 expects continuing growth from the sector. The forecast especially highlights regional hotel investments as a good bet.<\/strong><\/p>\n<p>Following on from 10.4% revenue per available room (RevPAR) growth in 2014 PwC expected a growth of 6.3% for 2015 and a further 4.2% in 2016. The slowdown in growth is not surprising, given the over 36 months of occupancy growth in the UK provinces since November 2012. PwC expected occupancy to hit 76.0% in 2015 and forecast 77.0% in 2016, which would be highest on record, driven partly by structural supply shifts towards a greater proportion of budget rooms.<\/p>\n<p>Secondly, developers like Shepherd Cox, who mainly focus on regional hotels and rebrand them after purchase into luxury accommodation, offer investment with a low level of risk. With buyback options, monthly paid income and a globally recognised brand, investors might feel as safe as they can when weighing up options.<\/p>\n<p><strong>Whether or not to invest in hotel rooms is still a decision every buyer needs to make for themselves, but when it comes down to the numbers, hotels might currently give investors all they\u2019re looking for.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Short-term economic uncertainty, political uproar and frustration\u2026 these are definitely three things Britain\u2019s Brexit vote kicked off. What it also brought, however, is a weak pound and a big interest from European tourists. The country\u2019s decision in the EU referendum to leave the Union once and for all has led to a dramatic drop in<a class=\"excerpt-read-more\" href=\"https:\/\/www.buyassociationgroup.com\/en-us\/news\/uks-hotel-sector-next-big-property-investment\/\" title=\"ReadIs the UK\u2019s hotel sector the next big property investment?\">&#8230; Read more &raquo;<\/a><\/p>\n","protected":false},"author":1069,"featured_media":4665,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[59,6],"tags":[175,17,85],"class_list":["post-1433","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending-news","category-uk-housing-market","tag-hotel-investment","tag-property-investment","tag-stamp-duty"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/1433","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/comments?post=1433"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/1433\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media\/4665"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media?parent=1433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/categories?post=1433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/tags?post=1433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}