Hotel room investment?

Zippeh · 5 July 2017 at 1:49PM

Anyone seen this type of investment before?

http://www.rightmove.co.uk/property-for-sale/property-67355255.html

Too good to be true comes to mind!

greenglide · 5 July 2017 at 1:54PM

Timeshare springs to mind!

Or parking spaces, storage pods etc.

I wouldn't consider it!

HappyHarry · 5 July 2017 at 3:10PM

Risk of 100% loss springs to mind.

The guarantees mentioned on the page you have linked appear to be worthless, as the company marketing these investments has this sentence in their FAQs;

Question: Is there any guarantee that I will make a profit?

Nothing is guaranteed and please be aware that the value of any investment can go down as well as up and all of our investors are urged to seek financial advice from a qualified IFA prior to investing in property. We as a company do all we can to ensure our clients make a profit but there is no guarantee.

And this in their disclaimer;

The facts contained within are for information and illustrative purposes only and do not purport to show actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

And this too;

xxx Ltd shall not have any liability for any damages of any kind whatsoever relating to this material. By accepting this material, you acknowledge, understand and accept the foregoing.

I won't link to the company, as these do not look like suitable investments for the majority of investors looking at this forum for ideas.

PasturesNew · 5 July 2017 at 3:30PM

Even if it were a good idea ... you have to ask yourself how many people would wish to book (from choice) and/or return, with that outdated and gaudy decor.

It won't be long before it all needs a makeover.

It would suit a very few people .... and those people wouldn't be asking the question you are asking.

jimjames · 5 July 2017 at 5:18PM

Zippeh wrote: »

Anyone seen this type of investment before?

Funnily enough I've repeatedly seen this type of investment posted here with questions asking if it's suitable for their cash savings. In every case the answer is NO!

Why risk losing 100% of your money on fake guaranteed investments when you could invest in a fully regulated investment in a S&S ISA.

Rollinghome · 5 July 2017 at 6:32PM

We're just back from a week in a south-west UK coast 4 star hotel which was almost empty and where we paid just over 30% of their usual rate for the best rooms despite being the hottest week of the year.

Lovely place with every imaginable facility including a 9 hole golf course, 2 swimming pools, tennis and squash courts, but a quick glance at the state of the outside window-sills showed how much money it needed and how it was struggling.

They might do a bit better if the level of the pound encourages us to holiday in the UK but sadly it's the last place I'd want to have my money.

Malthusian · 6 July 2017 at 10:52AM

You are also reliant on the hotel being constantly full, every single day. Because presumably the hotel hasn't flogged off all its rooms, which means that if a guest wants a room, they're going to fill up the ones they own before they fill up yours.

Too good to be true? Well, taking £70,000 off you and handing you £7,000 of your £70,000 back next year and maybe the year after that, but with no guarantee that they'll do so, and promising to give you 125% back in five years but again dependent on this hotel being a stunning success, is not my idea of too good to be true. Too crap to be believed more like.

AnotherJoe · 6 July 2017 at 4:13PM

Zippeh wrote: »

Anyone seen this type of investment before?

Yep. Usually in connection with a post that says " they paid me my money in the first year but this year they are three months late amd I understand from faceboook they've gone bust how do I get my hard earned life savings back?.."

Eco_Miser · 6 July 2017 at 9:53PM

If I wanted to invest in hotel rooms, I'd want to invest in a part-share of a whole hotel (or chain of hotels) so I wasn't dependent on their room allocation algorithm, but got a cut from every guest.

eddddy · 7 July 2017 at 12:33AM

The comments in this thread are just scratching the surface of the potential problems with this type of investment.

As a starting point get the legal pack - probably including a lease, a leaseback agreement, a management agreement, a buyback agreement, a confidentiality agreement (The last pack I saw was about 106 pages.)

1. Read and make sure you understand every single word.

2. Ask yourself who on earth would agree to terms like that.

(I suspect it's only people who don't actually read/understand the documents that would sign them.)

Gambler101 · 7 July 2017 at 7:38AM

These threads usually resurface 2 or 3 years later with tales of people losing the lot lol

Hotel room investment?

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