Podcast Summary
Insights from a serviced accommodation expert: Despite the challenges of COVID-19, serviced accommodation has remained resilient, with house prices continuing to grow at an accelerated rate in cities like Nottingham and Manchester.
Serviced accommodation has been a resilient sector despite the challenges brought about by the COVID-19 crisis. Our special guest on this week's podcast, a serviced accommodation expert, will share insights into his experiences in this sector. In news, the HomeTracker report reveals that house price growth has accelerated in the last month, with Nottingham and Manchester leading the way in yearly growth of 4.3% and 3.9%, respectively. The report, which takes data from Zoopla, shows that house prices have risen 2.4% year on year and have continued to grow in the last month, defying expectations given the economic challenges. While there are challenges ahead, Hometrack predicts that annual growth rates will be maintained in Q3 2020, with potential downward pressure towards the end of the year or into 2021 due to pent-up demand being worked through and the end of the furlough scheme leading to increased unemployment.
Property Hub's YouTube channel grows, team shifts focus to serviced accommodation: The Property Hub team has seen rapid growth on YouTube and plans to increase content, while investor Chris Ryder pivots to serviced accommodation for higher revenue despite added work.
The Property Hub team has seen significant growth on their YouTube channel, adding 500 subscribers per week, and they plan to increase content later this year. Meanwhile, the serviced accommodation market has been severely impacted by the pandemic, leading investor Chris Ryder to shift his focus from traditional buy-to-let to short-term rentals, experiencing revenue that is at least twice or even three times higher despite the added work. The team encourages listeners to subscribe to their YouTube channel for more content and to stay informed. Despite the challenges brought about by the pandemic, the Property Hub team remains optimistic and adaptive in their investment strategies.
Impact of COVID-19 on Short-Term Accommodation Industry: The COVID-19 pandemic caused a significant decrease in revenue for the short-term accommodation industry, particularly in the leisure market. To mitigate losses, the industry shifted focus to key worker markets, offering reduced rents and accommodating their needs.
The COVID-19 pandemic significantly impacted the short-term accommodation industry, particularly in the leisure market. At the start of the year, despite Brexit and other uncertainties, the industry was confident. However, when the pandemic hit, bookings began to cancel, resulting in a third less revenue year-on-year in Q2. To mitigate the losses, the industry shifted focus to key workers, offering reduced rents and accommodating their needs. This included NHS workers, wind farm maintenance personnel, and those working on infrastructure projects. By concentrating on these markets, the industry was able to offset some of the losses caused by the cancellation of leisure bookings. Overall, the pandemic forced the short-term accommodation industry to adapt quickly and focus on key worker markets to survive.
Hotels form partnerships during crisis: Amidst crisis, collaboration and adaptability led hotels to form partnerships, focus on new markets, and explore long-term lettings, resulting in unexpected opportunities and growth.
During times of crisis, collaboration and adaptability can lead to unexpected opportunities. The COVID-19 pandemic forced the closure of hotels, leading some to send inquiries for key workers to competitors. Instead of viewing each other as rivals, these hotels formed partnerships and exchanged leads. This experience of working together during a challenging time was satisfying and productive. Reflecting on the first six months of the year, the speaker acknowledged the difficulties faced but also saw it as an opportunity to start a new business and improve existing processes. The crisis led to a decrease in leisure bookings and revenue, but the summer is expected to see an increase in staycations. Many operators in the market have adapted by focusing on key workers and NHS staff, while some have considered pivoting to long-term lettings. The speaker emphasized the importance of having diverse portfolios and keeping options open. Overall, the crisis presented challenges but also opened up new possibilities for growth and collaboration.
Challenges and Opportunities in Short-Term Accommodation Market: Despite crisis-induced challenges, short-term accommodation market offers opportunities for property owners, especially those catering to key workers and those in need. Businesses with grants and advantages can succeed, while service accommodation may recover faster than hotels.
The short-term accommodation market has faced significant challenges due to the crisis but also presents opportunities. Some property owners have shifted to long-term rentals, while others have pivoted to accommodating key workers and those in need. Businesses that qualified for small business rate relief grants have been helped. Opportunities include housing people during crises, such as home damage or relocation. Looking ahead, the next three years may bring a mix of challenges and opportunities. The market might not be ideal for new entrants, but those with advantages like contacts or existing bookings can succeed. Service accommodation may recover faster than hotels. Overall, the sector's future remains uncertain, but it holds potential.
Service Accommodation: A Flexible and Profitable Investment Opportunity: Service accommodation offers exclusive use, reducing social distancing challenges. Demand remains strong despite economic downturn. Research, financing, and permissions are crucial. Industry growth and potential future regulations.
Service accommodation, such as vacation rentals and short-term stays, offers a flexible and potentially profitable investment opportunity, especially in the current climate where social distancing is prioritized. Service accommodation allows for exclusive use of the entire space, reducing the challenges of social distancing compared to traditional hotels. Despite the economic downturn in certain sectors, particularly in travel and tourism, there is still strong demand for service accommodation from essential workers and families looking to explore their own countries instead of traveling abroad. However, it's important to do thorough research, including understanding local competition and regulations, and ensuring you have the necessary financing and permissions. The industry is expected to grow and become more professionalized, with potential future legislation requiring accreditation. So, whether you're new to the sector or a seasoned investor, consider service accommodation as a viable and potentially lucrative investment option.
Service accommodation: rewarding investment strategy: Quick response to issues is crucial in service accommodation. Diverse market includes families, contractors, professionals, and relocators. Adaptability and dedication are key during challenging times, as demonstrated by Chris's 30% drop and subsequent recovery.
Service accommodation can be a highly rewarding investment strategy, as evidenced by Chris's experience of receiving excellent ratings and positive feedback. However, it's important to remember that you're in the service sector and need to respond quickly to issues. The market for service accommodation is diverse, including families, contractors, professionals, and those relocating. Despite the challenges posed by the pandemic, Chris's portfolio saw only a 30% drop, which could have been much worse if he had been passive. Instead, he was actively adaptive, making significant changes to his strategy and putting in a lot of work to mitigate the impact. Service accommodation can be profitable, but it requires dedication and effort. Chris's success story demonstrates the potential rewards for those willing to put in the work.
Using adversity to create opportunities: Adversity can present new opportunities for growth and success. Stay positive, adapt, and don't let obstacles hold you back.
A successful businessperson or investor, like Chris, doesn't let adversity slow them down. Instead, they use challenging times to create new opportunities. Despite the difficulties brought about by the pandemic, Chris remained active and adaptive, starting a new business and reviewing his processes. This positive attitude and resilience are valuable qualities for anyone in business or investing. It's natural to experience ups and downs, but the key is to not just survive, but to thrive. Chris's story is a great example of how to do just that. If you've had successes, no matter how small, during these challenging times, we'd love to hear about them. Share your stories on social media or leave a review of the podcast. Keep pushing forward, and don't let obstacles stand in your way.
Exploring resources for expat property investors: The Property Hub, an online resource, offers valuable information for expat property investors through podcasts, articles, videos, and a weekly email with free resources and courses. Chess.com, a free chess platform, can also help improve strategic thinking skills useful in property investment.
There are numerous resources available, both online and offline, to help individuals succeed in property investment, even if they are expats or beginners. The Property Hub offers a wealth of information through its website, including podcasts, articles, and videos, specifically tailored to the needs of expats. Additionally, the Hub Extra section provides extra value to its members through a weekly email filled with free resources and courses. On a personal note, the host recommends the free chess.com platform for those interested in improving their chess skills, which can be a valuable tool for strategic thinking in property investment. The platform offers various training courses, articles, and the ability to play against opponents at similar skill levels. Overall, the Property Hub and its resources, along with the recommendation of chess.com, can significantly contribute to the success of property investors, regardless of their background or experience level.
