If you’re looking for a great investment opportunity, commercial real estate and property chances may have caught your eye. These can be great to buy, improve, and resell, or just buy and hold. The profit margin on buying and flipping is substantial, even eye-popping at times, and buying and holding onto something means you can keep your net worth safeguarded in property value while also enjoying a stream of rental income.
Hotels are among the best places to invest in, particularly in a city like London that has millions of visitors coming in all the time. Domestic tourism and visitation are always robust, but it’s also an international destination too for both people enjoying a holiday or professionals coming in for commercial business. They all need a place to stay.
London and its surrounding areas are quite crowded, so property values are very high, and that makes hotels here very valuable. Still, how do you identify the top profitable hotels in London to possibly invest in?
For starters, look for anything that is obviously undervalued or well below the market rates for similar properties. Those should be something that can be restored to market value or even better with the right improvements and upgrades. It could simply be a case of disinterested or lackadaisical ownership, and if you put a new management team in place, you can spruce the place up to bring new life and value into it again. Then you can likely resell for a nice profit or just keep it.
Something else to investigate when trying to identify London’s most profitable hotels are ones that are in up and coming neighbourhoods but might not have a lot of competition. It’s easy to flock to a hot market, but if multiple other hotels are going up nearby, then your vacancy rates might go up.