In the recent past, Dubai witnessed many project launches in the real estate sector. However, there were not many for those looking to invest in the profitable hospitality sector.
How does this type of investment work?
Similar to a Buy-to-Let investment, each unit is ‘let’ out to guests. Having an established hotel management firm with an excellent track record to handle your investment will add value to your investment.
Benefits of this model:
- A turnkey investment means less headache for you as an investor as you can benefit from industry specialists managing the investment
- A traditional Buy-to-Let property can lie empty for months at a time. This is a risk for investors. This risk is less when it comes to a hotel investment.
- Average yields are higher for a hotel room investment. This can vary from 12% per annum for a hotel investment compared to 5% per annum for a traditional buy-to-let in mortgage.
What should you keep in mind while choosing one?
- Location: This is an important element to consider as the hotel itself has to attract visitors – and this will depend on the kind of amenities it has, attractions in its vicinity as well as the convenience of transportation
- Features: This starts from staff who genuinely offer warm service, honest local information, a strong marketing team, a killer breakfast, Conference facilities, co-working spaces and overall a hotel which is always looking to add value to the guest’s experience
- Investors can avail higher ROI by investing in projects that are located closer to facilities like conference halls
What you can invest in?
Emaar launched the Rove City Walk which is aimed at those investors who are eyeing a high ROI from the hospitality investment segment.
The project has:
- Exclusive guest rooms with premium amenities
- It is centrally located in Dubai
- Investors can benefit from 40% revenue share
- Investors can also enjoy a free annual hotel stay for 2 weeks
- The facility provides exclusive world-class amenities
- Community Hall
- Day Care Center
- Retail Centre
- Swimming Pool
- Kids Pool
- Shopping Mall
- Tennis Courts
Located in City Walk, the hotel has a huge advantage as far its location is concerned. City Walk itself is a lifestyle destination with international retail outlets, gourmet eateries and elegant hotels.
It has close proximity to Sheikh Zayed Road, The Dubai Mall, Financial Center, World Trade Center and more.
The biggest advantage of the project is that it is managed by Emaar, which has a portfolio of hospitality brands including Address Hotels and Resorts, Vida Hotels and Resorts and Rove Hotels.
It offers an excellent opportunity to capitalize on a proven market, and because the property is operated by an outstanding hospitality group, investors can enjoy peace of mind that their investment is in secure hands.
The returns expected in the hospitality industry are higher than normal residential, and here a turnkey solution is offered wherein the buyer will get a full solution and doesn’t have to worry about renting the units.
Visit this link to find out more about the project: http://offplans.ae/properties/