There are many benefits to becoming an investor in hotel rooms in the UK as opposed to traditional buy-to-let according to ipsbmv.com - not least in Olympic year when occupancy rates are expected to soar.

The concept of investing in Hotel rooms is not new, investors are increasingly recognising the benefits of investing in the commercial sector where yields are more than double those in residential property; void periods are few and far between and investors can even use their pension.

Jon Ainge, director of ipsbmv.com commented, "hotel room investment is the next big thing in property investment. As a buy-to-let investor myself the drawbacks for me were void periods and maintenance.

"If you are not particularly good with DIY, then the costs of repair and, maintenance can reduce your profit.  With hotel rooms you have a turnkey investment that is fully managed for you and you don't need to worry."

Hotel room investment has its origins in the US and works just like any normal buy-to-let investment, except the investors buys a room to let out to the hotel's guests.

The crucial difference for investors is that hotel rooms count as commercial property, which means for those with enough in their pension, investing via a sipp is an option.

Investing in hotel rooms with a sipp will give the investor the benefit of tax free capital growth and earnings. The only drawback is the investor cannot use the room without paying the full market rate or they may risk an investigation by HMRC.  

The yields generated from hotel room investments are on average higher than traditional Buy to Let investments. Gross net yields of 10% per annum are achievable compared to average gross yields of 5% from traditional Buy to Let properties.

Ipsbmv.com are currently offering investors the opportunity to invest in hotel rooms with 10% net yields guaranteed for 10 years based on 66% occupancy.  



For more information comment or interviews on investing in hotel rooms, please contact Brett Tudor brett@ipsbmv.com or call 0844 800 6661.