Business investment in the property sector (Hotel Investment ) is indeed very promising, especially in Indonesia as a developing country, the hotel property business is predicted to still be ranked above other investment businesses.
In addition, the income is relatively large compared to other investments, such as deposits or mutual funds. The profit each year for hotel investment can reach 8% to 13%, you know. In addition, there are many other benefits that you can get as a hotel property investor.
For those who are looking for investment products, property investment provides a great opportunity
In the last few years, the trend to develop the property business is getting higher. For example Bahlan developers are starting to direct this industry to the condotel category. This condo is an apartment called a condotel which has different characteristics compared to ordinary apartments. For those who are looking for investment products, property investment provides a great opportunity to be pursued. It is based on the advantages of property investment that will provide large returns to the perpetrators. Before deciding to invest, it must be understood about the opportunities and challenges in it.
In 2020, property investment was getting better than the previous year. this means that many have entrusted their capital into this vehicle and it can be seen from several existing indicators. The first is about the growth of the Growth Domestic Product or GDO in the Southeast Asia region, which means that in Indonesia it has also increased. Indonesia has good stability for investing so that investment opportunities are wide open for domestic and foreign investors. In the property sector, there was a 50 percent increase in investment compared to the previous year. This is good news for both domestic and foreign investors.
Running a Hotel Investment Business is Easy, isn’it?
Running a Hotel Investment business can be said to be easy. This depends on how you manage and also maintain your business journey.
There are many things that you must learn and pay attention to when running a business, one of which is financial management.
Sometimes, many are still unable to manage business and personal finances properly. Some of them are often mistaken for the source of money used for business needs. To minimize all possibilities, it would be better if you take advantage of tools that are often used specifically for financial management and planning, such as the My Financial application.
Now, let’s discuss a number of other benefits that you can get as a hotel property investor, namely:
# 1 Property Values Are Always Rising
Basically, the hotel investment business is a property business. The value of a good and well-maintained property will certainly increase from time to time. This is the first advantage and of course it is very tempting to invest in the hotel business.
# 2 Operating Income
The hotel business investment is classified as a long-term investment. Why is that? Because the return on investment returns or what is commonly known as ROI (Return of Investment) usually ranges from 5 to 10 years and can even be more than that. After deducting operating costs, if you invested IDR 100 billion of your money, in general, the average annual income was IDR 10 billion. This of course depends on the classification and type of hotel.
# 3 Can Stay Free
You, as an investor, can be said to be the owner of the hotel, right? So, you can use the hotel facilities whenever you want.
Hotel Business Investment: Self-managed or Branded?
From the type of management, there are 2 types that can be selected and both have their own advantages and disadvantages.
You can manage your hotel business in a self-managed or branded manner. What are the differences, and the advantages and disadvantages?
Self-management Hotel Investment
Self-management means that you build your own brand and build it from scratch. Here are the advantages and disadvantages:
Advantages of Hotel Investment:
Building a self-managed hotel business does not need to pay a franchise fee or management fee.
Self-management means there is no need to consult with the franchisor (franchisor) and you act as the main manager.
Disadvantages of Hotel Investment:
- Management is usually carried out by families and is usually less professional.
- Development and arrangements for employees are also not well structured.
- The revenue received by the hotel is still not optimal because the marketing is not organized so that the hotel is not well known.
- Do not have experts such as in tax matters so there are still weaknesses in its management.
- The audit system is still below standard.
Where there are opportunities, there will also be challenges
Opportunities and challenges will always come together, especially in the property sector. Where there are opportunities, there will also be challenges that must be faced in order to make this business more known and attractive to investors. As a leak, investors in Indonesia have a mindset about long-term modern housing and property, so that if the type of property matches their mindset and taste, they will automatically start investing their capital in these products.
The government has currently issued a policy for foreign citizens so that they can own property in Indonesia. However, until now, the opportunity given by the government has not been responded well by foreign investors. This could be a great opportunity for domestic investors to be able to have large investments in their own country without having to worry about the domination of foreign nationals in Indonesia.