Investments in hotel rooms in Dubai
How to buy Hotel apartments for investments in Dubai
Dubai is among the ten world's most popular tourist destinations. That is why the investors focus to investments in hotel rooms. Anticipating customer expectations developers offer different schemes and options for investment in hotels.
Buying the hotel is a big investment for investors and developers propose to buy hotel rooms which is more suitable for regular investor especially in terms of liquidity and price.
Many hotels don’t only guarantee the asset safety and also offer a two-week vacation once a year.
Some developers guarantee income up to 10% annually for period up to 10 years.
Hotels are managed by well-known international groups (for example, Wyndham), central reservation system provides a steady flow of customers from all over the world. Naturally all these factors have a positive impact on the profitability of the hotel.
Our company recommends to clients firstly to understand the way to receive the income by investors. Some hotels share net income depending on gross income of the investor's room.
In another way some hotels use income pool scheme. That case we recommend not to pay attention to view from the windows and floor plans, which don’t affect the profitability of investments in their room according Title Deed. That income of each investor is the sum of hotel gross incomes for less the cost of management and maintenance of the hotel for a certain period in proportion to the square of the total area of the hotel room. Even if the hotel room will be empty during year the income will be calculated from all hotel.
Therefore if you are seriously thinking about investing in the hotel rooms pay attention to the management company, the location of the hotel and to the rooms with the lowest price per square foot.
Heart-of-city Realty has experience in hotel investments and we will be able to offer a wide range of projects in Dubai to invest in hotel rooms directly from developers (no additional fees), as well as from investors at market price.
