Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Zippeh
    • By Zippeh 5th Jul 17, 1:49 PM
    • 85Posts
    • 46Thanks
    Zippeh
    Hotel room investment?
    • #1
    • 5th Jul 17, 1:49 PM
    Hotel room investment? 5th Jul 17 at 1:49 PM
    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!
Page 1
    • greenglide
    • By greenglide 5th Jul 17, 1:54 PM
    • 2,728 Posts
    • 1,728 Thanks
    greenglide
    • #2
    • 5th Jul 17, 1:54 PM
    • #2
    • 5th Jul 17, 1:54 PM
    Timeshare springs to mind!

    Or parking spaces, storage pods etc.

    I wouldn't consider it!
    • HappyHarry
    • By HappyHarry 5th Jul 17, 3:10 PM
    • 347 Posts
    • 408 Thanks
    HappyHarry
    • #3
    • 5th Jul 17, 3:10 PM
    • #3
    • 5th Jul 17, 3:10 PM
    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.
    Last edited by HappyHarry; 05-07-2017 at 3:10 PM. Reason: Typo
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • PasturesNew
    • By PasturesNew 5th Jul 17, 3:30 PM
    • 59,220 Posts
    • 345,699 Thanks
    PasturesNew
    • #4
    • 5th Jul 17, 3:30 PM
    • #4
    • 5th Jul 17, 3:30 PM
    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
    • By jimjames 5th Jul 17, 5:18 PM
    • 11,906 Posts
    • 10,286 Thanks
    jimjames
    • #5
    • 5th Jul 17, 5:18 PM
    • #5
    • 5th Jul 17, 5:18 PM
    Anyone seen this type of investment before?
    Originally posted by Zippeh
    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.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Rollinghome
    • By Rollinghome 5th Jul 17, 6:32 PM
    • 2,089 Posts
    • 2,276 Thanks
    Rollinghome
    • #6
    • 5th Jul 17, 6:32 PM
    • #6
    • 5th Jul 17, 6:32 PM
    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
    • By Malthusian 6th Jul 17, 10:52 AM
    • 2,411 Posts
    • 3,353 Thanks
    Malthusian
    • #7
    • 6th Jul 17, 10:52 AM
    • #7
    • 6th Jul 17, 10:52 AM
    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
    • By AnotherJoe 6th Jul 17, 4:13 PM
    • 6,893 Posts
    • 7,330 Thanks
    AnotherJoe
    • #8
    • 6th Jul 17, 4:13 PM
    • #8
    • 6th Jul 17, 4:13 PM
    Anyone seen this type of investment before?
    Originally posted by Zippeh
    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
    • By Eco Miser 6th Jul 17, 9:53 PM
    • 2,892 Posts
    • 2,681 Thanks
    Eco Miser
    • #9
    • 6th Jul 17, 9:53 PM
    • #9
    • 6th Jul 17, 9:53 PM
    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.
    Eco Miser
    Saving money for well over half a century
    • eddddy
    • By eddddy 7th Jul 17, 12:33 AM
    • 4,826 Posts
    • 4,467 Thanks
    eddddy
    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
    • By Gambler101 7th Jul 17, 7:38 AM
    • 404 Posts
    • 989 Thanks
    Gambler101
    These threads usually resurface 2 or 3 years later with tales of people losing the lot lol
    The instructions on the box said 'Requires Windows 7 or better'. So I installed LINUX
    • darkidoe
    • By darkidoe 9th Jul 17, 1:17 AM
    • 793 Posts
    • 892 Thanks
    darkidoe
    They shouldn't be allowed to use the word 'guaranteed' in any of their ads. Misleading.

    Save 12K in 2017 # 9 £6036.65/15 000 (40.24%)
    Save 12K in 2016 # 8 £19 721.58/12 000 (164.35%) Achieved!
    • cashbackproblems
    • By cashbackproblems 9th Jul 17, 11:24 AM
    • 1,675 Posts
    • 640 Thanks
    cashbackproblems
    Stick it in a property tracker fund eg ishare you will much more money and much safer
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

471Posts Today

5,131Users online

Martin's Twitter
  • Byebye! I'm about to stop work & twitter, to instead spend glorious time with Mrs & mini MSE. Wishing u a lovely summer. See u in 10 days.

  • WARNING Did you start Uni in or after 2012? The interest's rising to 6.1%; yet it doesnt work like you think. See https://t.co/IQ8f0Vyetu RT

  • RT @JanaBeee: @MartinSLewis Boris is the anomaly (coffee), the others are versions of normal (beer). Lots of same candidates = vote share d?

  • Follow Martin