Aparthotels- self-catering apartments or rooms which are rented out within hotel complexes - are becoming increasingly popular with overseas travellers.
Specialist aparthotel company Stay City says the company is finding a huge increase in enquiries and is planning the construction of 500 units a year to its property portfolio over the next few years, with the aim of having 2,500 units by 2017 across the UK, Paris and other international gateway cities.
The company's Andrew Fowler said that Stay City was responding to a fundamental shift in the way people use hotels. “Freedom to choose where and how you eat, especially when on extended stays or with young children, is something that the traditional hotel format doesn't accommodate well. “
“StayCity gives guests extra room in their bedroom as well as a private kitchen/diner while preserving the essentials such as 24-hour reception and housekeeping and we throw in wi-fi and sports channels for all. Our newest aparthotels share developments with synergistic tenants such as restaurants and convenience stores so guests get the ultimate freedom of choice,” he added
With the surge of interest in these hybrid hotels, investors looking for a rental income could profit by investing and also benefit from the chance to use the aparthotel for their own uses.
As an example, Property Global Investments have a Portuguese investment aparthotel called Sesimbra Bay Beach & Spa Resort which has prices starting at €214,000.
You are entitled to up to 56 days per year use, with a 1% commitment fee, and can typically expect a 6% annual return on your investment, meaning that investing in a 2-bed apartment which can be bought for €290,000 will provide a €15,660 annual income.