Force Majeure clauses in agreements used to be all but formality for years, until the 2020 global pandemic. Now that we’re rounding 9 months since WHO announced COVID-19 outbreak a pandemic, we’re all just starting to come to terms with the new normal. Over the past year, the hospitality industry was hit hard. With borders closed or restricted globally, travel decreased dramatically, causing many properties and hotel operators to come into distress.
Saying that the COVID-19 pandemic has introduced a lot of uncertainty into all of our lives over the past year would be putting it mildly. Economies around the world are struggling, small businesses shutting down, or fighting to stay afloat, large corporations are downscaling, the airline and hospitality industries are counting catastrophic losses after barely a year of travel limitations.
Did you know that you can build wealth and income by investing in hotel rooms? If you haven’t heard of hotel room investing, you’re not alone. Even though it is a tried-and-true strategy that is used worldwide, many people have never heard of it. Hotel room investing is similar to investing in short-term rentals, but instead of owning a residential property that you rent out to vacationers, you own rooms in a hotel. Each month, you get a share of the hotel’s profit based on how many rooms you have invested in.
The possibility of owning a hotel room is still a pretty novel concept for a lot of investors, and over the past few weeks we’ve had a lot of questions about what the ownership model actually looks like. Are you buying a share of the hotel room to become a co-owner? Are you buying a timeshare?
Hotel room investments in boutique hotels are the best investments you can make in Batumi real estate – and the well-established Ruebush Group is the only developer specializing in hotel room investments of this kind.
Many countries allow foreign investors to buy property on their soil. This can be attractive to house flippers, as well as buy-and-hold investors, particularly those who buy vacation rentals or, with the help of companies like Ruebush Group, hotel rooms.
How cool would it be to own a hotel? More so than a rental house or commercial storefront, it’s a glitzy asset that just screams prestige … especially if the hotel in question is an upscale five-star crown jewel in the hands of a Blue-Chip brand-name management company.
There are many reasons to choose hotel room investing over other types of real estate investing. You’ll diversify your portfolio and get free accommodations while on vacation, all without doing any of the heavy lifting. For these reasons and more, we highly suggest that you consider hotel room investing. Here are a few of the little-known benefits of investing in hotel rooms!
If you’re reading this, I’m taking an educated guess that you looking to make an investment that is going to deliver in yearly returns. I know this, because you’re not alone. According to a survey conducted by the Adjara Ministry of Finance and Economy in 2019, 66% of all investors buy real estate in Batumi for its future cash flow potential, rather than for personal accommodation.
Ruebush Hospitality Group started its business during the peak of the real estate boom in Batumi. We advised our clients in selecting optimal properties to invest in, we carried out all construction works, and provided a full rental management service. Well into our first year of operations we started to observe several factors that encouraged us to change strategy for future development and shift our focus from apartments to developing boutique hotels.