Investments in hotel real estate of Dubai


Tourism brings a significant contribution to the economy of Dubai, therefore investments in hotel real estate of the emirate are considered a promising investment of capital.

Investments in the hotel business in Dubai became available to individuals several years ago. Several companies-developers offered customers to buy serviced rooms during the construction phase or after its completion. Private investors got access to a part of the profits of the famous hotel chains, having architectural and cultural significance, located in any, even the most prestigious areas of the emirate.

Quite often, investors interested in commercial real estate choose the hotel industry. At the same time, to earn money on the tourism industry, it is enough to buy a hotel room, and not to purchase a building and business entirely. And even international investors successfully use this opportunity.

This business is always managed by the hotel operator, which takes a part of the income, but also assumes all the responsibilities for the maintenance of the room and for the service of the guests.

Since the purchase of a hotel room brings income in proportion to the share of the owner from the proceeds of the business, the investor can distribute the investments to different brands and cities, thereby diversifying his investment portfolio.

Finally, most operators allow owners to borrow rooms for free for a few days a year as a bonus.

If the purchase of hotel-type apartments is aimed at guests who need accommodation for a long time, the standard hotel room is given to a very wide category of guests.

If you compare the purchase of a hotel room with the purchase of an apartment, one of the main advantages of the hotel business is the fact that the hospitality industry is closely connected with the tourism industry, and if the latter is actively developing, then the profit of such investments will be significant.

Among the advantages of investing in hotel rooms are:

■ Investing in a know-how-profitable business, which is part of the global network and managed by highly qualified specialists;

■ High level of profitability of investments in hotel rooms,

■ Significant reduction in the level of investment risks;

■ High level of liquidity of hotel rooms, allowing the owner to resell them quickly enough in the secondary market, if desired or as necessary;

■ Minimize efforts to manage the acquired real estate, as well as to resolve commercial and administrative issues through close interaction with the management company.

Thus, hotel rooms in Dubai are the best option for placing funds for investors seeking to maximize the profitability of their investments.

Regularly there are programs that offer investments in hotels under construction. Also, the privileges and rewards from developers for private investors gained popularity. And given that to obtain a net profit there is not even a need for a personal presence, investment in the hotel business is the most convenient option for foreign investors.