What could a UK REIT mean for UK hotels?

The paper provides an update on how the government's thinking has evolved on the REIT model since it first sought consultation in March 2004. An explanation of the current requirements for REIT status is provided, together with a commentary on some aspects which still need to be resolved. Consideration is then given to the possibilities for investing in hotels, including reference to models in other tax jurisdictions. Readers will gain an insight into how REITs could be developed to facilitate investment in UK hotels where further changes are required to create an effective framework.