3 Ways to Invest in Hotels

In Monopoly, there is a bit of a rigmarole to go through before being able to buy a hotel. You first have to own all of the properties in a colour group and then get to four houses on these properties before you can buy a hotel to swap them out with, allowing you to charge more rent and climb the monopoly ladder. Some ruthless players will also purposely run down the supply of houses to prevent other players from getting enough houses to build hotels, and that’s just my seven-year-old. But when it comes to Monopoly, all loyalty is out the window. Luckily, in real life, it is not quite so convoluted or cutthroat. In fact, it is actually far more accessible these days than residential investment in a lot of ways. 

Commercial property investing has become more and more attractive recently with legislative changes over on the residential side. But commercial doesn’t need to just be offices or retail. Another great way to diversify over into the commercial side is via hotel units with Safari Group. Not only do Safari Group have a long and trusted track record of hotel developments, but they have more on the way and not only are they building some stunning structures, but they are structuring some really easy options for investors to own hotel units from as little as $255K on a commercial freehold property. 

These hotel units come with a lease in place and are already tenanted by a hotel operator. With the tenant in place, you receive a guaranteed monthly income based on the lease agreement. Not only can these returns be really attractive, but the outgoings are straightforward (Body Corporate fees and rates) and it is a lot simpler than a lot of other commercial options which might have complex leases in place and high outgoings. 

In fact, you don’t even need to worry about finding a tenant or managing the property, plus there’s a 2% annual rental increase after year 3, with market reviews every 5 years. And as another bonus, you also get 10 days of free stay accommodation every year.

Depending on here you want to invest and stay, Safari Group has three great options.

Ellerslie

660 Great South Road, Ellerslie, Auckland

Located at Central Park Ellerslie with a quick scroll to the Ellerslie train station and easy access to the motorway, this hotel makes for the perfect spot for visitors looking to stay outside of the CBD but with access to it in just a few minutes. This hotel is currently under construction and will be open in September 2023. 

The Numbers

Rent Per year: from $15,000+gst 

Outgoings: $2,240 

Gross return: 6% 

Estimated Net return: 5%

Get in touch with the team from for more information about the Ellerslie Hotel Units.

Wellington 

123 Taranaki Street, Te Aro, Wellington

Ramada Wellington has a stunning location near Wellington waterfront, Cuba Street, and Wellington Central offering easy access to the heart of the city, cool eateries, shopping and work if you need to. This Hotel is already completed and is fully operational. 

The Numbers 

Rent per year: from $17,000+gst

Outgoings: $5,600 PA. 

Gross return: 6.6%. 

Estimated Net return: 4.47%

Contact Safari Group to find out more about these Hotel Units.

Parnell

25 The Strand, Parnell, Auckland

LQ Parnell is located in the historic and prestigious suburb of Parnell. It is near Auckland’s key attractions, tourist destinations and the CBD, including the University of Auckland, Double Grammar Zone, and Britomart, as well as Parnell’s own assortment of world-class eateries and fashion stores. This hotel is currently under construction and will be open in late 2023. 

 

The Numbers

Rent per year: from $17,819+gst 

Outgoings: $3,400 PA. 

Gross return: 5.6%. 

Estimated Net return: 4.6%

Contact Safari Group to find out more about their Hotel Units.