Hey there, smart investor!
Let’s talk about the elephant in the room: inflation. As of January 2024, the Consumer Price Index (CPI) in the U.S. rose by 7.5% year-over-year, marking one of the highest inflation rates in recent history according to the U.S. Bureau of Labor Statistics.
The Consumer Price Index (CPI) in Nigeria reached an all-time high of 339.42% according to NBS.
In the UAE, the Consumer Price Index (CPI) in the United Arab Emirates reached a record high of 113.3 according to Trading Economics.
Also, in the United Kingdom, the Consumer Price Index (CPI) witnessed a 57.06% increase according to the Office For National Statistics.
Wow! Massive, it’s a big one!!!
Now, you might be wondering, “How on earth do I protect my hard-earned money from losing its value?”
As the massive increase in the prices of commodities reduce the purchasing power of my paper money?
Well, my dear smart investor, let me introduce you to a game-changer:
…Hotel Room Investment
Picture this: while traditional investments like stocks and bonds are getting pummeled by inflation, hotel room investment stands tall, unfazed by the storm.
Why? Because when inflation rears its ugly head, people still need a place to stay. Business travellers, vacationers, you name it – they’re all checking into hotels, keeping those room rates soaring even as prices elsewhere skyrocket.
But wait, there’s more! Did you know that the hotel industry has historically outperformed other real estate sectors during times of economic uncertainty?
It’s true. Even when the economy takes a hit, hotels tend to weather the storm better than residential or commercial properties.
Plus, with travel bouncing back post-pandemic, the demand for hotel rooms is stronger than ever.
Now, let’s talk numbers. While your typical investment might struggle to keep up with inflation, hotel room investment offers a steady stream of income through short-term rentals.
In fact, the average daily rate (ADR) for U.S. hotels increased by 10.3% in 2023, according to STR data.
Statistics from numerous sources suggest an upward trend in hotel rates in Nigeria. A Nigerian hospitality leader, Transcorp Hotels Plc reported an average daily rate (ADR) of $174.89 in 2023.
The hotels in the UAE saw a surge in performance, with Dubai hotels registering an 83% occupancy rate in the first 3 months of 2023 according to Zawya.
The average daily rate (ADR) for UK hotels increased by 23% in the first quarter of 2023 according to a Knight Frank report.
That’s not just beating inflation – it’s leaving it in the dust. Oh Yeah, it’s a big one!!!
And here’s the kicker: hotel room investment isn’t just about cash flow. It’s about capital appreciation, too. As inflation drives up construction costs and land prices, the value of hotel properties tends to rise alongside it. So not only are you raking in rental income, but you’re also sitting on a goldmine of potential capital gains.
But what about risk, you ask? Well, sure, every investment comes with its own set of risks. But when it comes to hotel room investment, you’re not putting all your eggs in one basket. By diversifying your portfolio with a mix of properties in prime locations, you’re spreading out that risk like butter on toast.
And let’s not forget about the tax benefits. Investing in hotel rooms can offer some sweet tax breaks, including depreciation deductions that can offset taxable income. So not only are you hedging against inflation, but you’re also keeping more money in your pocket come tax time.
So there you have it, my dear smart investor. In a world where inflation is running wild, hotel room investment is your knight in shining armour.
With its steady cash flow, potential for capital appreciation, diversification benefits, and tax advantages, it’s the ultimate hedge against inflation in 2024.
So what are you waiting for? Don’t let inflation rob you blind. Take action today and start investing in hotel rooms to protect your wealth and secure your financial future.
Click here to contact RealEstateMoses and begin your hotel room investment journey. Click here to check exciting hotel investments on REM.
It’s a fact, your future self will thank you for it.
Oh Yeah! Massive 💯
Moses Oyong is a luxury real estate advisor with a passion for arts and culture, music, fashion, and all things luxurious. With a keen eye for beauty and attention to detail. I strive to help my clients find their dream homes that reflect their unique sense of style and taste whilst providing them with the right information to ease the stress of the decision-making process.
