Serviced accommodation is one of the fastest growing sectors in the hospitality industry. Investors love this new asset class, as it consistently delivers high net yields, the potential to leverage returns, an easier exit than hotel rooms and genuine potential for capital growth.
Liverpool is the perfect UK city for short let serviced accommodation - it draws in millions of visitors each year, with football, The Beatles, music, nightlife, universities, maritime history, golf, racing and culture.
Short let returns are driven by tourism demand, property location, specifications and management company performance and Hatton Garden delivers on these points and many more!
It's in a really convenient location on the edge of the commercial district, with the mainline rail station just 4 minutes' walk away and easy access to the national road network. All the nightlife of Matthew street is practically on the doorstep, while the UNESCO waterfront is only 500m away.
The development is tailor-made serviced accommodation, with a 24-hour concierge and secure fob entry to the apartments. Specifications will be a highlight, with hydro massage baths, halogen lights and quality finishes throughout.
Based on room rate estimates that are 10% below the average currently being achieved in the city centre and an occupancy level of just 65% (some well-known serviced apartment operators are achieving 95+ in Liverpool), the NET yield after all costs is forecast to reach up to 11% on some units.
This amazing ROI can be boosted further by using a mortgage, with specialist short let lenders offering up to 75% at an interest rate of 4%.
There's also a highly attractive payment structure, with just 15% on exchange and the balance on completion. The developer has a deposit protection scheme in place for investors, a finance lender has fully funded the construction and taken with the short cycle, this represents some serious risk reduction!
The developer is a leading Liverpool hospitality company, so they really know the market, but owners are not dependent on them to run the management and rentals, which will be handled by a specialist agency focused on the short lets sector.