Once a hotel is operating and a proven income stream can be shown, then the investor can then take advantage of the resale market.
The room would be valued on a commercial basis according to the level of rental income, quality of operator and the hotel brand. It is reasonable to assume that, if rental income achieved rises 10%, then the room value will rise by a similar amount as it is typically the yield % that the new investor is seeking.
Investors should look to buy a hotel room off-plan and take advantage of the early years’ greater than average increasing rental income. Returns tend to increase year on year as the Hotel establishes itself and word spreads. When the rental income has a solid track record then you have a proven and solid IGA to resell. Although a new concept to some, the US, Singapore and Hong Kong have been profiting from such asset classes for decades.