Is Buying a Hotel Room for Investment Purposes Worth It? Expert Insights and Advice

Is Buying a Hotel Room for Investment Purposes Worth It? Expert Insights and Advice

2024-02-24 20:53:00

For many years it has been possible to buy a hotel room. Not to live there but to enjoy it at certain times of the year and earn money. Is it a good investment? How does it work ? Several experts give us some answers.

Our reporters Justine Pons and Marc Evrard were able to visit a hotel room for sale, presented as being of type “comfort” et “ideally located in the city center of Liège”. His price ? From 130,000 euros. “We arrive in the bedroom area, with a king size bed, a small desk, a flat screen TV and a private bathroom with shower”describes Matthias Sintzen, front office manager of the hotel in question.

The hotel “takes care of everything”

This investment has several advantages. It is possible to stay several nights per year in the room at a very reduced rate. And the rest of the time, the hotel takes care of everything. “You don’t have to worry regarding cleaning or looking for someone to occupy your property.”, explained Matthias Sintzen. “We solve the problem of damage, explains Maximilien Van Brandt, sales district manager at Unibricks and real estate developer. Because if someone does damage to the room, well we’re going to take it back to a credit card, like anyone would go to a hotel.”

The owner receives a share of the hotel’s profits

The advantage is also financial. The owner of the room receives a percentage of the hotel’s profits. There is no guaranteed net return as it varies based on costs and profits. “90% of the hotel’s profits are paid into a common pot, which itself is redivided to the different owners, illuminates ink Maximilien Van Brandt. This is how it works. It allows you to have a net return but without having to take care of anything.”

“It can be the best operator as well as the worst”

As with a classic purchase, the owner must go before the notary, but with a few differences. “This is a very special property that you cannot live in, recalls Aline Hugé, notary. You can neither live in it yourself nor rent it out yourself; management is really entirely entrusted to a third party. It can be the best operator, as well as the worst.warns the notary.

Reselling your hotel room is not always a good deal in the first few years, so it is better to think carefully before investing. “It is more aimed at people who have a certain experience and who will be able, if necessary, to act as counterweights in the management structure.” considers Olivier Hamal, president of the union of owners and co-owners. “It’s more like a pure financial investment, a bit like if you were buying securities, completes Aline Hugé. The company is the operator and it is the reliability of the operator that is essential for the purchase.”

The advice is to choose your hotel carefully, ideally located, well managed and profitable. This type of purchase also exists for student accommodation and rooms in rest homes.

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