Description
Clacton hostel investment at 13 Beach Road delivers a rare freehold opportunity in Clacton-on-Sea. Moreover, it boasts full Sui Generis planning consent (Use Class C1), guaranteeing regulatory security and smooth operations. It offers 16 well-appointed bedrooms, including seven en-suites, and comprehensive communal areas across 311.23 sq m of building space.Pricing options
With a guide price of £4,000,000 and a verified net income of £550,720 per annum. The asset yields 13.11% after operating costs of £40,000. Furthermore, as a proven hostel investment. This freehold hostel Essex asset significantly outpaces traditional HMO returns. The authority-backed emergency accommodation investment structure secures direct payments for rent and support services, eliminating housing benefit dependencies. Investors can have confidence in the C1 hostel yield profile. The building spans 311.23 sq m of total space (258.39 sq m living area) and trades at a highly competitive £13,495 per sq m on total area. Download the Legal Pack to review planning consents, lease agreements, and operational details. Additionally, the street view image highlights the property's prime coastal position: [caption id="attachment_16241" align="alignleft" width="853"]
Property for sale A residential street view of Beach Road in Clacton with parked cars, white terraced houses, and clear skies, as seen in a Google Maps interface from June 2017—an ideal spot for emergency accommodation investment. Presented by Palace Auctions[/caption]
Street view of 13 Beach Road showcasing the hostel exterior and coastal proximity.
Key Investment Highlights:
Freehold hostel with C1 Sui Generis planning consent
16 bedrooms (7 en-suite) and generous communal kitchen and living areas
Authority-backed rental model as emergency accommodation investment
13.11% net yield; £590,720 gross rental income; £550,720 net income
311.23 sq m total area; 258.39 sq m living area; £13,495 per sq m
Seven off-street parking bays; transferable licence until May 2030;
Surrounded by Clacton Pier, local shops, and café culture, the site appeals to a wide range of tenants.
Additionally, it stands just a 5-minute walk from Clacton Pier and 15 minutes from Clacton Station, ensuring strong demand year-round.
For planning and council information, refer to Tendring District Council. Explore more opportunities in our Current Auction or browse related listings for similar investment options.
Finally, this emergency accommodation investment combines market-leading yield, planning certainty, and a prime seaside location to deliver an attractive, resilient asset. Consequently, investors seeking a high-yield, secure freehold hostel Essex opportunity should act swiftly to secure this Clacton hostel investment.
Investment Highlights
Current Gross Income: £276,160 to Jan 2026 Current Net Income: £227,000 to Jan 2026, paid quarterly Licence Validity: Hostel licence (HMO) transferable until May 2030 Vacant Possession: From Jan 2026 (or earlier on request) Long-Term Security: Tenanted by local council since 2002 Upside Potential: Council or Clearsprings contracts post-2026 [caption id="attachment_15374" align="aligncenter" width="1024"]
financal-performance-graphs-for-Clacton-Hostel-investment-By-Palace-Auctions[/caption]
Figure: Annual income, yield comparison, ROI projections and payback periods for current tenancy vs. future contracts.
| Scenario | Gross Yield | Net Yield | Payback |
|---|---|---|---|
| Current (to Jan 2026) | 6.90% | 5.67% | 17.6 yrs |
| Contract 1: Council (5 yrs) | 14.98% | 12.31% | 8.1 yrs |
| Contract 2: Clearsprings (4 yrs) | 3.75% | 3.08% | 32.4 yrs |
