What are the most effective ways to invest in Istanbul hotels?

No matter how many hotels there are, as a big tourist country, Turkey will always be in need for more, given the number of tourists who visit it annually as the sixth largest tourism destination in the world, which increases, on the one hand, the demand for rooms and hotel apartments and on the other hand put pressure on hotel owners in terms of the quality of services provided in each hotel.

The great pressure on hotel owners regarding the quality of services strengthens the competition between them to attract the largest number of guests, where the hotels that received more tourists and achieved double profits are considered the most successful ones.

By mentioning the profit, many specialists agree on the fact that investing in hotels in Turkey is one of the successful options for foreigners who want to buy property in Turkey with abundant profits, provided that they know how to invest correctly and effectively.

With a close correlation between the tourism and real estate sectors in Turkey, especially in Istanbul, many clients wishing to purchase property in Turkey wonder about the most effective way to invest in Istanbul hotels and how can the process be successful?

What are the most effective ways to invest in Istanbul hotels?

Real estate investment in Istanbul hotels is divided into three types:

• New hotel launch

This type of investment requires starting from scratch, whether by constructing a new hotel or buying a piece of land suitable for building a hotel after ensuring that the hotel license can be obtained or purchasing a ready building suitable for hotel investment.

This kind makes the investor comfortable in determining the details of the hotel, such as design, decoration, space, and the embodiment of all other desires, according to the ideas drawn on his mind, but on the other launching a new hotel may not be the best deal, given that the process takes a relatively long period and additional expenses to open it, and it needs wide promotion, except the hotels, which are part of a well-known chain.

• Buying ready hotel

If the investor is looking for more profit, buying a ready hotel is an ideal option as there are competitive prices with facilities, since the type of property is determined to be valid for hotel investment.

One of the downsides of this type of investment is that the freedom to choose details is limited unless the investor decides to make adjustments to the decoration, for example, and this requires spending more money.

The investor in this type of hotel should not lose sight of the fact that the real owner’s thinking about selling his hotel means that it is related to a weak revenue, for example, so he must prepare an excellent promotional and investment plan that enables him to reap great profits in a short time.

• Investment in Istanbul hotel apartments

Many real estate experts recommend buying hotel apartments in Istanbul due to the high demand for it, especially by tourists, and to ensure record profits the hotel better be located in a tourist area or a well-known area close to historical Istanbul landmarks, for example.

How to obtain a hotel license in Istanbul

The foreign investor wishing to purchase a hotel in Istanbul must obtain a commercial license from the municipality of the region in exchange for paying a sum of money that varies according to the hotel’s location, specifications, and area.

And if the investor wants to enhance the confidence of his clients in it, he must also obtain a tourist license from the Turkish Ministry of Culture and Tourism, but it is worth noting that this type of license is not mandatory to start the activity in the hotel, contrary to the commercial license, which is a necessary condition.

What are the prices of hotels and hotel apartments in Istanbul?

Hotel prices in Istanbul are subject to the area, location, services and classification, and generally the prices start from 300 thousand dollars and up to one million dollars, while the price of luxury hotels starts from two million dollars or more, and in terms of hotel apartments, their prices range between 100 thousand dollars and 400 thousand dollars.

And the foreign investor can make sure to recover the value of the hotel, that is, the capital in a circumstance not exceeding 10 years, given that the rental of one room in Istanbul starts from 40 dollars and reaches up to 100 dollars per night according to the hotel classification, i.e. 3 stars, 4 stars, or five stars.

In general, real estate investment returns in Turkey are among the highest in the world due to the tourist, real estate, and permanent investment mobility in the country.

If you are a foreigner, who can’t determine the best and most suitable for the guaranteed profit, then Alhuda experts advise you to invest in Istanbul hotels, the right choice to reap good profits in the shortest possible time.