Let Sam Zherka Guide You While Investing in Hotels for Lucrative Deals

In recent years, many real estate investorsare turning their attention to the opportunities the hospitality industry offers them. They are opting to use themoney they have in buying hotel rooms of prominent establishments in this sector. Sam Zherka is a popular real estate developer and consultant from America with more than 30 years of experience under his belt. He says these people hold the view that they can earn a higher rate of return on such investments at a low risk. Moreover, they can also leave the maintenance, collection of rentals and running of such rooms to proficient professionals who have the necessary knowledge and expertise in this field.

What are the factors you need to consider when buying a hotel room?

He goes on to explain that you can choose to buy a particular hotel room in a new development project, which is under construction rather than purchasing the entire establishment. As a return on your investment, your get a percentage of rentals such a room earns when it is let out to tourists during the holiday season or other people who come to stay this accommodation. However, he says it is important for you to take into consideration the following factors before putting your money into this sector:

Get an idea of the type of asset you want

In the hospitality sector, purchasing rooms in the mid-scale hotels can offer you a continuous and steady flow of return on your investment. However, during times of economic recession, these establishments tend to find it difficult to let out their room to customers. On the other hand, volatile conditions in the economy do not affect the number of tourists staying at luxury hotels as these organizations cater to a higher income group. If you want to earn higher returns on the money you sink into this industry, this is a better option.

Be aware of your tax options

The amount you have to pay as taxes to the local authorities on the income you earn when you invest your money in a hotel room depends upon the location of establishment. In many places, hotels fall under the category of commercial properties and it is possible for you to avail certain tax exemption schemes on such investments.

Availing an exit plan

When you invest your money in buying a hotel room, you can also opt for a buy-back scheme. Under this plan, you need to keep your investment for a certain period of time after which you are eligible to sell the accommodation at a profit. In such a situation, you earn an addition income over and above the percentage of rentals you receive during this period.

Buying hotel room in prominent establishment is a good investment option if you want a high and stable return on the money you sink into this sector but do not want to take unnecessary risks. However, Sam Zherka says it is important for you to take the above factors into consideration before making up your mind. This can go a long way in ensuring you do not miss out on certain opportunities or pay unnecessary amount for taxes. 
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