The simplest way to explain the hotel developments we choose to work with is this:
• The investor buys a property within a resort and leases it back to the Hotel operator to manage as a Hotel on the investors’ behalf.
• The Hotel operator is responsible for the bookings and running the Hotel and deducts the management costs before sharing the income with the investor.
• To make this type of investment affordable for more people, the properties can sometimes be fractionalised down to as little as £10,000 or less.
• In either case the investor owns the property, or a fraction of a property, and benefits from both income and any capital growth whilst having the option to sell at any time.
• These investments are very often suitable for both cash and pension investors, via a SIPP or SSAS, and cash investors can often benefit from personal usage as well.
• Where a SIPP or SSAS is to be considered, professional financial advice should be sought to ensure that this route to investing is appropriate for the individual investor.
