Oh we do like to invest beside the seaside!

Returns of 10% are attracting investors to UK seaside hotels instead of traditional buy-to-let, according to Property Frontiers research.

Related topics:  Property
Rozi Jones
28th July 2017
beach huts
"They outshine buy-to-let in several ways - there's no stamp duty, no buy-to-let tax issues and a comparatively low entry point"

The UK enjoyed record visitor numbers in 2016, with Visit Britain reporting 37.6 million visitors over the course of the year, up 4.14% on 2015.

Travel marketing company Sojern has reported a 23.8% rise in the number of Brits planning a UK summer break for 2017, with Brexit believed to be a key influencing factor in many families' decision to opt for a UK break.

As a result, hotel investment in the UK is projected to grow by 28% in 2017.

While the pound has recovered somewhat since the EU referendum, it is still some 16% lower against the dollar and 14% lower against the euro than it was before the vote. Many investors are taking advantage of this fact to increase their stock of UK hotel rooms, with returns of around 10% tempting many to opt for these instead of for buy-to-let opportunities.
 
Savills reports that investment in UK hotels has already reached £2 billion in the first half of 2017. If the firm's projections play out, investment for the year will hit £5.1 billion, an increase of 28% over 2016.
 
The current popularity of UK seaside hotels is reminiscent of the Victorian era - the UK's seaside towns are enjoying a significant revival.

Scarborough in North Yorkshire is an excellent example. According to Visit Britain figures, the county as a whole enjoyed a 4.56% rise in tourism in 2016, with a 15.52% rise in total visitor expenditure. Scarborough's majestic Harland Hotel is one of those properties reaping the benefits.

Ray Withers, CEO of Property Frontiers, commented: "UK hotel rooms are hot property right now when it comes to investments that offer impressive returns. They outshine buy-to-let in several ways - there's no stamp duty, no buy-to-let tax issues and a comparatively low entry point. For investors from overseas, there's also the ongoing favourable exchange rate, with the pound not yet fully recovering from the UK's decision to leave the EU."

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