Call Now

Misconceptions Of Investing In Hotel Apartment

There are a variety of reasons why investors and homeowners may have hesitancy towards investing into hotel apartments, the myths are there.

Blog / General / 2023 April 26, 2023

Still hesitant to invest in a hotel apartment? In this article, we've compiled why we think the topic deserves a fresh look. There are many reasons why investors and landlords are reluctant to invest in serviced apartments, not the least of which is.

Serviced apartments promise high yield potential and should be considered by all investors, even if there is a misunderstanding about the economic value and future of the industry. Let's take a look at this misconception and dispel it once and for all.

Before the arrival of COVID-19, the hospitality industry was one of the largest industries in the global economy, worth more than $570 billion and employing nearly 10% of the global workforce. Despite the unprecedented challenges faced over the past year, experts believe the industry will return to pre-pandemic levels as early as 2022/2023. The industry has suffered setbacks, but only temporarily, and will fully recover.

The travel and hospitality industry is one of the most lucrative industries that provide many services to people. Year after year, the industry has seen an increase in the number of travelers worldwide. The hospitality industry contributes to generating income in Ghana.

Ghana recorded 11,000 international tourists in the first nine months of 2021, indicating an improvement for this year. The pandemic has created broad market sentiment in the investment community as it negatively affects livelihoods and wreaks economic havoc.

Investment slowed in 2020. However, according to macroeconomic data, there are signs of recovery in the first quarter of 2021, driven by the easing of restrictions and the introduction of vaccines. The recovery from the pandemic has been slow, but still.

Before the pandemic, demand shifted from luxury accommodation to a combination of specialist hotels and exclusive residential properties – serviced apartments. Investment demand for hotel apartments is growing steadily every year at a faster rate than traditional residential real estate.

Today, many people prefer this type of investment because of the easy money it can bring. It's a practical investment. Many investors are also aware that serviced apartments are becoming the first choice for both business and leisure travelers. Serviced apartments are furnished apartments similar to hotel rooms, available for long and short stays.

Serviced Apartments are full-sized studio, one, two and three bedroom apartments that offer 30-50% more space than a typical hotel room. You have more space to work, relax, spread out and live, with extras like a pool, gym, lounge and other recreational facilities. High rental yields and a guaranteed annual return on investment (ROI) will make most real estate investors jump. So why is there so much doubt and doubt about investing in hotel apartments?

What is the danger?

Financial Risk: Are Returns Really Guaranteed? Often with panoramic views and luxury amenities, these well-furnished apartments offer investors high yields and guaranteed annual returns. The spectacle seems almost irresistible. But investors are reluctant to make an investment decision after careful consideration.

They consider the financial risk. They need to ensure that guaranteed annual returns will continue if things don't go as planned.

Serviced apartments have been and will continue to be a stable business concept if done right. For a project to be successful, it must strike a balance between the goals of the developer and the owner. The serviced apartment can serve as a viable second home or holiday retreat. Downfalls usually happen when developers don't deliver on their promises and/or when buyers have a misunderstanding about what they're actually buying.

When looking to buy a hotel-style residence, the most important issue is affordability. "Is this a property that will make a good return? Does the location of the property help the return?"

Yields provide investors with a known stable investment income. It provides stability and high returns over a period of time. Investors are interested in knowing how much income the investment will bring. This type of return is usually combined with guaranteed capital growth at the end of a certain period. Investing in hotel apartments also means a guaranteed return on invested capital. With this arrangement, the investor buys a share and guarantees that the unit will be resold to the hotel's management team at a fixed price after a certain period. For investors, this provides a guarantee of return on capital (and capital growth).

Hassle-free investment and returns, especially attractive to income seekers. When combined with a capital growth guarantee, investors can enjoy a steady stream of high income with the added benefit of inflation protection. Your investment is looked after, maintained and guaranteed with the assurance that your wealth will generate income. People want to make annual profits with minimal effort, and this is definitely something to consider. Residential hotels are a great real estate investment right now. A seasoned investor knows that he is making a great investment that will generate a great return on investment.

The hospitality industry is growing again and you deserve a piece of it.

Fortunately, we have real estate investment opportunities for investors like you. Invest in and own serviced apartments and get guaranteed annual returns that meet your financial needs. Consider adding one of our lucrative investment properties to your portfolio.

Often with panoramic views and luxury amenities, these well-furnished apartments offer investors high yields and guaranteed annual returns. The spectacle seems almost irresistible. But investors are reluctant to make an investment decision after careful consideration. They consider the financial risk. They need to ensure that guaranteed annual returns will continue if things don't go as planned.

Earlbeam Realty as well as Corporate Keys offers investment opportunities to clients looking for ways to make money from their hotel investments. 



Recent Posts
  • Difference Between a Serviced Apart...
    When traveling for business or pleasure, choosing the right type of accommodation is crucial for a comfortable and enjoyable stay. Two popular options are serviced apartments and hotels, eac...
  • ‘Open for Business’: Victorian ...
    The dream of an Australian Disneyland has long tantalized many, but recent developments have brought this vision closer to reality. Victorian MP David Limbrick has issued a call to action, u...
  • Tips on Where to Find the Best Pet-...
    Australia, with its diverse landscapes and welcoming attitude towards pets, is a fantastic destination for pet owners looking to travel with their furry friends. Finding pet-friendly accommo...