Frankfurt leading the way in European condo-hotel market |
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| Friday, 25 July 2008 | |
 Frankfurt leads the condo-hotel investment route Buy-to-let hotel rooms are becoming increasingly popular in Europe with Germany leading the way, according to a specialist. Traditional holiday homes are now regarded as a luxury which few can afford in the current economic climate. 'A changing world and stricter financial regulation has meant that this is not an option open to everyone, in fact it is an expensive time consuming business with often little reward,' said Mark Bingham Managing Director of Owner Invest. He said that those seeking assured investments combining capital appreciation and high rental yield but still wanting access to their own holiday home are leading the way in terms of condo-hotels which were pioneered in the US. 'Buy-to-let apart-hotels and hotel rooms have now made a major impact on the overseas property industry and they look certain to establish themselves as the most popular form of investment for many years to come especially in light of the busy, cluttered, time consuming and expensive world we live in,' he added. In terms of rental yield, he believes this kind of property investment is hard to beat. 'The question an investor needs to ask themselves is "How many weeks a year am I looking to use my holiday home/apart-hotel?" If the answer is under 60 days, then buy-to-let is the obvious choice financially,' said Bingham. He also points out that an apart-hotel is fully managed, there is no upkeep required from the owner and the facilities for both owners and guests are in situ. 'If the location is good then hotel occupancy will be high and high occupancy equals higher financial rewards. Compared to an often redundant holiday home left unattended for many months of the year, it is not difficult to see why apart-hotels are proving evermore popular,' he added. Germany is leading the way in this market in Europe especially in Frankfurt where the financial district has 170 hotels, totalling over 24,000 beds with an 80% hotel room occupancy which is growing year on year. This story relates to: [SEE ALL] BOOKMARK THIS PAGE (What is this?) |
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