Current demand makes hotel investment an attractive prospect

  • 16th September 2015
  • News
  • Stewart Hindley

The hospitality sector is an interesting one which can be influenced by a wide range of different factors including political and economic conditions. Even with current concerns in Europe and Asia, the industry remains strong and there is plenty of investment potential, particularly in popular cities which attract huge numbers of visitors each year, such as London, Paris, Rome, Barcelona and Munich.

Demand for hotel rooms is increasing across Europe and many cities have need for extra capacity to keep up. This presents many opportunities, especially if you can find the right location to invest in and develop an effective and viable business plan. With real estate still a valuable investment commodity, the potential is clear to see.

The opportunity to purchase a hotel is further highlighted by the thawing of the debt market. Lenders are happier to offer finance now because of the demand for rooms and the value of properties. These act as excellent security and give businesspeople more freedom to secure the funds they need to acquire and renovate hotels. Finding funds to start a new project may be more challenging, but lenders currently tend to be more open to the idea, especially if it is supported with a sound business plan.

At Stewart Hindley and Partners LLP we are committed to advising clients about the availability of hotel and guest house finance and funding, and help them to find suitable solutions. As a full market broker we can offer independent advice and help each client find the right option for their specific situation. Whether you’re looking at a mortgage to purchase a property, funds for renovations or money to start a brand new project, we will offer professional guidance at all times.

The important thing to remember when searching for funding is that you will need to satisfy various criteria to show the lenders that you are a safe bet. These requirements will differ slightly depending on the lender, but typically you’ll need good security (including a sizeable deposit, a suitable property and contents with sell on values), a positive credit history and a sound business plan. Experience in the sector will also be looked upon favourably.

Now is a good time to look at hotel investments, especially for UK based investors. Britain remains a popular tourist destination and the instability in Europe is causing more demand for rooms, with a higher number of people choosing to take their holidays here.

Stewart Hindley

More by the author