Investing in Real Estate Periods

A new way to enjoy your holidays

Hotel real estate periods, just like Condo-hotels, is a specific and modern type of ownership created and promoted by big hotel chains some years ago to compete with the old and controverted timeshare industry. It’s the result of many years of losing market shares against a now outdated system that has pushed the hotel chains to retaliate with a much stronger and reliable holiday/investment product.

Investing in real estate periods is a great way to earn yourself a wonderful holiday (or two) every year as well as making a sound financial investment. When you invest in this way you ultimately purchase a holiday product from a hotel chain for a set number of nights every year, usually with an unlimited duration. So, not only do you get to enjoy a nice holiday every year, but you also have an asset that can earn you money. This article will discuss a couple of ways that a real estate period can get you a good return on your investment.

Rent out your real estate periods

Just because you have invested in hotel real estate periods, it doesn't mean that you have to holiday every year at the same place. You could rent out your real estate periods to someone else and make yourself enough money to cover the finance of the purchase. You are free to sell your annual use of the property to anyone you choose, and of course to determine the price at which you will sell the holiday at. Most hotels will assist you with renting out your rental periods should you wish to do so. They usually work with tour operators that charge a marketing fee which is taken out of your proceeds from renting out your holiday, but it removes all the hassle of you having to do it yourself. Ultimately the hotels that you purchase your real estate periods from, along with tour operators, are the experts in the holidays they are offering, what better team to act as a salesperson for you? Using a rental scheme in this way also means that the operator will act as your representative throughout the transaction, offering you protection at all levels.

It is also worth noting that real estate periods are automatically handed down to your lawful heirs in the event of your death, usually without attracting estate fees. This investment will provide for your family for many years to come.

Referrals also make money

With most hotel groups offering real estate periods, it is entirely possible to enjoy your holiday every year and still make an income. Apart from the rental scheme, this can also be done through a referral programme. Most operators recognise that when they are doing something right their best form of advertisement is their customers. People who are content with a service will happily tell others about it, especially if you are willing to pay them a fee for doing so. To this effect, many operators offer a referral programme which allows their customers to invite family and friends to enjoy all the benefits they receive through their ownership of the rental estate period scheme. These invitations do not have any cost. Once they enjoy their holiday and purchase a real estate period the owner receives a referral bonus that is usually extremely lucrative. Many schemes also allow you to put your referral weeks up for rent. This means that you can charge the people you are inviting and start earning money even if they decide not to become clients. The earning opportunities really do seem endless.

Savings on holidays

You may think that if you rent your periods out, you will not be able to enjoy holidays, but nothing could be further from the truth.

Apart from the direct income you can receive with the rental of your real estate periods, you can usually save on holidays. Indeed, the use of your periods is free of charge which means free accommodation for at least 14 nights per year in any hotel in the chain. If your periods are placed in the rental scheme, you can still get additional stays and holiday in the hotels for a small booking fee (from £200 up to £400 per week). This service generally comes hand in hand with a private reservation centre offering big discounts on bookings for additional services like flights and car hire. These savings should not be disregarded. For your information, UK families spent around £1,284 per person on holidays in 2017. On this basis, if we take an average discount of 40% (including accommodation) for a family of four, we are looking at £2,054 savings per year. Or almost 2 members of the family travelling for free! Combine the savings with the earnings from the other aspects of your periods and you will find an investment to be reckoned with.

Among the big names of the industry you will find: Hilton, Marriott or Four Seasons especially active in the US. Global Great Hotels or Mundial Club are the most active and rapidly growing in Europe. If you prefer to invest in Asia, Amari and Archipelago International will probably be more adapted.