Why investors find country hotels in Great Britain interesting
The pandemic has given a new impetus to the development of domestic tourism in the UK, with country hotels in the form of individual cottages being in the greatest demand. Experts note a higher level of profitability of this option compared with apartments in hotels. This means that investments in this area can bring good profits.
It should be noted that domestic tourism in Britain has been popular for over 100 years. More often than not, travelers choose small houses in different regions of the country, which allow privacy and enjoy the local beauty.
For the investor who plans to invest about 500 thousand dollars, the real estate market offers several options. The first is an apartment, which can be rented for a long time. Thus it is possible to receive an income of 4-5% per annum. The second option for investment – is the object, which has hotel management and is focused on the tourism sector. This can be an apartment in Bali, a cottage in Brazil, or cottages in the UK. The return on investment starts from 7% per annum.
Investing in domestic tourism has several advantages, the main one being the low risk of loss. People will try to go on vacation under any conditions, but while trips to other countries can be quite expensive, travel within the country is available to many more citizens. Statistics from both the 2008 and 2020 crises support this statement – this sector of the market has shown stability and a rapid recovery.
In the last 2 years, Britons have begun to actively vacation within the country. Data from Barclays shows that 80% of travelers do not leave Britain. Visiting various parts of the kingdom, tourists book hotels. Popular with tourists is Bridlington, which is in Yorkshire. Here occupancy rate of hotels and country cottages is about 80-90%.
As for the latter, the prices for such real estate start from 140 thousand pounds. For that amount of money, you can buy a cottage of 20 sq.m and a plot of land of 60 sq.m. The owner receives a small house, barbecue area, and Jacuzzi on the territory.
A cottage of 32-33 sq.m can be purchased for 155-160 thousand pounds. A popular option is a two-story cottage with two bedrooms and panoramic windows. Enjoy demand and large cottages, for example, the price of the 117 sq.m is about 210 thousand pounds.
The sector of country hotels in the UK can hardly be called large. Construction here is practically not carried out, most projects involve the reconstruction of old hotels, including their expansion. Most of these objects are owned by management companies.