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The Coal Exchange gives investors opportunities in Hotel Room Investment

1st August 2016 Print

The new Coal Exchange Hotel is a new investment opportunity located in the near the centre of Cardiff. With the main tourist attractions close by, this investment opportunity is being offered by the highly regarded Signature Living Group.

The property has been renovated to an exceptional standard and it has taken one of the most loved and revered buildings in Cardiff and turned it into a beautiful hotel. It is a Grade 2 listing building and this means it comes with features at every turn. It was built in the late 19th century and is located in Mount Square with it being originally used as a base for trade negotiations related to the coal mines that the South Wales Valleys were famous for.

The developers have a wealth of experience when it comes to transforming properties of this nature as they have already carried out work on properties in Liverpool City centre with The Shankly Hotel as well as 30 James Street. These are properties that have drawn investors in from all around and they are now benefitting from the regular rental income that these hotels are generating. In a number of years these investments will be extremely profitable, highlighting just how well the developers know their market.

What will investors receive?

The Coal Exchange Hotel, Cardiff is not just a stunning property because it also brings with it a number of investment highlights. As mentioned, the developers know their market and this ensures that investors see a return on their money. During years 1-3 investors will see an 8% net rental income which will grow to 9% during year 4. From year 5 onwards this will increase to 10% but the investor will have the potential to sell their investment back to the developer at 108% of the original price. Hotels currently being invested in are experiencing an average of 85% occupancy rate which way over the local average of 72%. The group have experience and expertise and this is shown by the 1,000 beds that the currently operate.

Why invest in Cardiff?

Cardiff is a city that is growing at an incredible rate. It is diverse, multi-cultural and its ability to attract tourists from all over the world makes it one of the most popular destinations within the UK. It is known to be the home of Rugby and Football with the Principality Stadium (formerly known as the Millennium Stadium) drawing in fans from all around. It has plenty of history through the historic dockyards and Cardiff Castle and it is just a stone throw away from the Celtic Manor Golf Course which is famous for holding the Ryder Cup in 2010. The tourism figures are staggering with the city generating over £1bn in tourism each year with overnight visitors spending in more than they ever have done. 

Cardiff is an exciting city that certainly has a lot to offer, the Coal Exchange Hotel proves exactly this.

For more information or to enquire about the Coal Exchange, please contact Hopwood House.