What do you think of investing in a hotel? The approach is straightforward: by utilizing your investment funds you’ll acquire a hotel room and enhance your investment through real estate assets. Furthermore, you’ll consistently earn a portion based on the hotel’s sales as a return on your investment. In the past, hotels were operating solely for guests, but now they're also attracting investors. Let's explore this popular investment practice in the modern market. Let's discover the latest and currently popular investment strategies.

What does it entail to invest in a hotel?

Investors seeking alternative investment avenues have discovered a novel approach: they are investing in well-known hotels with the intention of generating profits through rentals. This eliminates the need to purchase high-cost real estate for potential returns. With considerably lower upfront costs, they have identified a means of earning passive income.

What are the benefits of investing in a hotel room?

High Demand

The strong demand for hotels is further bolstered by customer loyalty to reputable hotel brands. Companies with excellent service consistently attract customers, making hotel investment a promising and successful business opportunity.

Fewer CostsWhen you invest in a hotel, you get a hotel room as a collateral and become a partner without buying the entire hotel. This offers a more adaptable and cost-effective investment approach, with reduced financial expenses.

Lower Risks Opting for a hotel affiliated with a reputable company means gaining access to a loyal customer base, which means you won’t have to worry about renting a property yourself. As a result, this investment approach carries lower risks and provides a more secure investment opportunity when compared to other business strategies.

Stable Passive Income The hotel company takes full responsibility for all operational expenses and manages the hotel autonomously. This arrangement ensures constant access to transparent processes and financial information, primarily overseen by independent consulting firms.

No Extra Costs

When investing in a hotel, you only need to pay taxes, alleviating concerns about additional expenses. Unlike traditional ownership where you'd be responsible for utility bills or repairs, the hotel now covers any unforeseen costs, ensuring your property maintains its proper status for years to come.

Can investors pursue this strategy in Georgia?

The United Arab Emirates has experienced significant success with this trend, providing exceptional real estate investment opportunities. Hotel investments in the UAE are priced at approximately 30% higher than regular apartments, with standard rooms (about 25 sq.m) starting at $210,000, approximate IRR is about 8-10%. Typically, profits are divided between the hotel operator and the investor on a 60/40 basis. When compared to countries where this trend is prevalent, Georgia offers more affordable prices.

As for Georgia, this investment practice will soon become popular here as well. For example, the first premium 5-star Rotana hotel in Georgia - Pontus Rotana Resort & Spa is being built on Gonio beach, which is managed by the United Arab Emirates brand. This project is significantly different from the existing service hotels in the Georgian market and is a new word in terms of real estate investment.

Pontus Development is currently constructing the inaugural investment hotel in Adjara. This upscale establishment will be operated by the renowned brand Rotana, originating from the United Arab Emirates. The upcoming complex is situated in Gonio, boasting one of the region's finest beaches, and will feature an array of amenities, including restaurants, pools, a spa, casino, and conference halls.

The Rotana brand is known for exceptional services and offers, including:

• 600,000 travel agencies worldwide;
• More than 700,000 active members from different countries;
• More than 6 million visitors annually;
• More than 73% guest recommendation;
• More than 100 hotels worldwide.

The mentioned factors collectively create favorable conditions, leading up to a 14% Internal Return (IRR). Independent research conducted by consulting company Cushman & Wakefield also supports this finding.

The sales procedure will commence in July, but before that, you can visit the company's website at www.pontus.ge for additional details.

(Ad)