Investment for everyone?

  • 05/16/2017
  • Created by Thomas Wührer
Crowdfunding © lemontreeimages / Fotolia

For long time hotels were valid as secret investment tip only for professionals. Beside hotel owners and hotel chains, one could find in particular state and insurance funds, but also family offices and wealthy private individuals (HNWI, High-Net-Worth-Individual) among the investors. With the increasing fame of hotels as an attractive form of alternative real estate investment, but also because of low interest rates, new investor's groups enter this very special market. In the meantime, also for small investors a new interesting form to become a "hotel owner" was established. However, what is valid in big size, is also valid in the little scope: All depends on the details.

Acquisition in part ownership

The "normal" investor pays attention not only to the chance for an exceptionally high yield, but also to the security. Real estate fulfills this requirement as material arrangements by notary registration of the sale in the land register perfectly. Here the buyer becomes immediately the owner of a real estate or part of a real estate. This is even possible at certain hotels that offer single, fully equipped apartments for sale and which the investor acquires in part ownership. A contract with the operator is part of this purchase. This contract guarantees the maintenance, the renting and the occupation.

A perfect example for this concept is the hotel apartments in the Katschberg resort, which are offered by HOTELINVEST. The investment sums are more or less the same as for freehold flats. But in this case, the owner has no work involved, because his investment is completely administered by the operator. That is: He must not deal with the renting, the control of the rental incomes, the account of the additional costs and other things.

Magic word "Crowdfunding"

Another interesting form for hotel financing is crowdfunding. With "Crowdfunding" a new investment construction which is suited also for the dispersion of bigger property was developed. An investment company introduces via crowdfunding to finance an enterprise. If enough prospective customers who deposit an investment are found, then this group acquires the hotel. As a bonus the partners often get free overnights in "the own hotel". Via crowdfunding, the investor is – similar to a share corporation - indirectly part owner of the real estate. In the land register the investment company is registered as owner.

Conclusion: In the meantime, even with smaller amounts one can participate basically in the success and the substance of hotel real estate; and thus also profit from the yield and the value-growth. But as with all investment forms, here it is also a matter to proof thoroughly the respective financial engagement like juridical construction, the individual chances and risks of advantages and disadvantages as well as the professionality of the operator.

 

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