# Oh we do like to invest beside the seaside!  Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-07-21 Category: LIFESTYLE Category URL: https://financedigest.com/category/lifestyle Meta Title: UK Seaside Hotel Investments: Returns of 10% Meta Description: Discover why investing in UK seaside hotels is the hot new trend, with returns of 10%, no stamp duty, and low entry points. Find out more today! URL: https://financedigest.com/oh-we-do-like-to-invest-beside-the-seasidehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/1-10-1736843674068-compressed.jpg) - **Returns of 10% attracting investors to UK seaside hotels (Property Frontiers)** - **Hotel investment in the UK projected to grow by 28% in 2017 (Savills)** - **UK is most appealing hotel investment location in Europe (CBRE)** - **UK tourism sector to grow 3.8% per year to 2025 (Visit Britai** n) The UK enjoyed record visitor numbers in 2016, with Visit [Britain reporting](https://www.financedigest.com/britains-prince-harry-arrives-at-balmoral-itv-reporter.html "Britain’s Prince Harry arrives at Balmoral – ITV reporter") 37.6 million visitors over the course of the year, up 4.14% on 2015. Meanwhile, travel [marketing company](https://www.financedigest.com/veterinary-teleradiology-market-insights-by-leading-companies-and-emerging-growth-till-2031.html "Veterinary Teleradiology Market Insights by Leading Companies and Emerging Growth Till 2031") 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. This is excellent news for the UK’s seaside hotels, as well as for those who invest in them. ![Oh we do like to invest beside the seaside! 2](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2-6-1736843674059-compressed.jpg) **“UK hotel rooms are hot [property right now when it comes to investments](https://www.financedigest.com/is-property-flipping-the-right-investment-for-you.html "Is Property Flipping the Right Investment for You?") 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.”** **Ray Withers, CEO,** **Property Frontiers** While the pound has recovered somewhat since the EU referendum, it is still some 16% lower against the [dollar](https://www.financedigest.com/evergrande-jitters-pull-risk-currencies-lower-dollar-gains-on-safety-bid.html "Evergrande jitters pull risk currencies lower, dollar gains on safety bid") and 14% lower against the euro than it was before the vote. Many [investors are taking advantage of this fact to increase their stock](https://www.financedigest.com/asia-stocks-advance-as-investors-await-u-s-midterm-election-results.html "Asia stocks advance as investors await U.S. midterm election results") of UK hotel rooms, with returns of around 10% tempting many to opt for these instead of for buy-to-let opportunities. ![Oh we do like to invest beside the seaside! 3](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/3-3-1736843674077-compressed.jpg) Savills reports that [investment in UK hotels has already reached £2 billion](https://www.financedigest.com/toyota-motor-to-invest-5-3-billion-in-japan-u-s-for-ev-battery-supply.html "Toyota Motor to invest .3 billion in Japan, U.S. for EV battery supply") in the first half of 2017. If the firm’s projections play out, investment for the [year will hit](https://www.financedigest.com/u-s-rate-outlook-hits-stocks-propels-dollar-to-20-year-highs.html "U.S. rate outlook hits stocks, propels dollar to 20-year highs") £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](https://www.financedigest.com/france-halts-british-visitors-eu-nations-tighten-borders-as-omicron-rises.html "France halts British visitors, EU nations tighten borders as Omicron rises") expenditure. Scarborough’s majestic Harland Hotel is one of those properties reaping the benefits. From its commanding position overlooking Scarborough’s south bay, The Harland offers rooms for investment from £60,000, with [10% NET income for the next decade](https://www.financedigest.com/polycaprolactone-market-is-projected-to-expand-at-an-impressive-cagr-of-10-over-the-next-decade-to-be-valued-2-5x-its-current-side-by-2030.html "Polycaprolactone Market Is Projected To Expand At An Impressive CAGR Of 10% Over The Next Decade, To Be Valued 2.5X Its Current Side By 2030"). Then there’s the 125% defined buy-back option. ![Oh we do like to invest beside the seaside! 4](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/4-1736843674038-compressed.jpg) **_“The Harland [Hotel is precisely the kind of location that investors are seeking out in the UK. Investors are keen to tap into this increasingly lucrative market. At a time when other types of residential investment](https://www.financedigest.com/why-are-investors-checking-out-of-uk-buy-to-let-and-checking-in-to-hotel-investment.html "WHY ARE INVESTORS CHECKING OUT OF UK BUY-TO-LET AND CHECKING IN TO HOTEL INVESTMENT?") are being squeezed in terms of the profits they can offer, seaside hotels offer an exciting opportunity to take advantage of a range of market conditions.”_** **Ray Withers, CEO,** **Property Frontiers** The story is the same in Woolacombe, North Devon, voted Britain’s Best Beach by TripAdvisor for 2015 and 2016. Rooms at the  Atlantic Bay Hotel are being snapped up by domestic and international investors alike, as the ongoing potential of the British seaside tourism market becomes increasingly apparent. A survey conducted by CBRE earlier this year found that the UK had the most appealing [market in Europe](https://www.financedigest.com/sales-of-multi-attachment-loaders-in-the-europe-market-is-projected-to-expand-at-2-8-cagr-between-2021-and-2031.html "Sales of multi attachment loaders in the Europe market is projected to expand at 2.8% CAGR between 2021 and 2031") when it came to hotel investment. **“Brexit will take time but the wheels of the economy will still** [turn and there is no doubt that the UK’s particularly strong economic fundamentals will further underpin investor confidence in purchasing UK property.”](https://www.financedigest.com/can-crowdfunded-property-turn-rundown-neighborhoods-around.html "Can crowdfunded property turn rundown neighborhoods around?") **Miles Gibson, Head of Research, CBRE** Visit Britain [projects that the UK tourism sector will grow](https://www.financedigest.com/automotive-racing-seats-market-is-projected-to-grow-with-a-cagr-of-8-10-for-the-forecast-period-of-2021-2031.html "Automotive Racing Seats Market is projected to grow with a CAGR of 8% – 10% for the forecast period of 2021-2031") by 3.8% per year between now and 2025. As tourism [growth continues](https://www.financedigest.com/passendo-signs-new-strategic-partnerships-as-it-continues-growth-trajectory-entering-the-italian-and-german-markets.html "Passendo signs new strategic partnerships as it continues growth trajectory, entering the Italian and German markets") to outpace that of the country’s overall economy, the seaside hotel sector looks set to continue being one of the main beneficiaries. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---