Will it work?

advice4europe

I want to convert my 28 bedroomed promenade Hotel into 12 seaview rooms for limited liability partners and 16 letting bedrooms. The idea is that rooms can be lived in or let out by the partners.
I have a number of reasons for doing this the main being that I want to retire as a teacher and cannot sell the hotel, even leasing seems to be a problem.
The rooms will be priced at £50,000 the value of the hotel is £450,000 and the intention is to have a major refurb and install a lift. I will retain part of the hotel - It has too much potential with a fantastic location.
Any advice will be gratefully received - knowing what I know and having the right circumstances I would definitely be interested but I would be wary if I saw this idea elsewhere. It's just a thought at the moment so obviously have a long way to go.
I would be grateful for any advice.

Emmzi

depends - london central maybe, b;ackpool no. tbh the overall valuation suggests this is not in a luxury location so you may struggle to find investors. £50k for a hotel room .. seems high. plus your legal fees may eat up profit... and your new reporting requirements to your investors.

where is your property?

Trollfever

Investors rue collapse of GuestInvest

Created: 15 October 2008 Written by: Claer Barrett GuestInvest's high profile advertising campaign promised investors that they could: "Earn money while others sleep". But those who parted with up to £400,000 for a buy-to-let hotel room are now suffering sleepless nights, fearing that the value of their investments could be decimated now the hotel investment group is in administration.

http://www.investorschronicle.co.uk/InvestmentGuides/Property/article/20081015/42192a7c-991c-11dd-8351-00144f2af8e8/Investors-rue-collapse-of-GuestInvest.jsp

Running_Horse

What happened to that bloke who couldn't sell his Blackpool hotel, on here a few months ago?

poppysarah

I'd turn it into sheltered accomodation for oaps who want to live by the sea.

Emmzi

Running_Horse wrote: »

What happened to that bloke who couldn't sell his Blackpool hotel, on here a few months ago?

slowdog? still about. he hasn't sold, but was getting some good advice on improving business, and I hope it goes well for him!

advice4europe

Emmzi wrote: »

depends - london central maybe, b;ackpool no. tbh the overall valuation suggests this is not in a luxury location so you may struggle to find investors. £50k for a hotel room .. seems high. plus your legal fees may eat up profit... and your new reporting requirements to your investors.

where is your property?

Hi nIt's in the no Zone - Blackpool, although it is at the posh end!!

advice4europe

poppysarah wrote: »

I'd turn it into sheltered accomodation for oaps who want to live by the sea.

Funny you should say that it's actually next door to a nursing home.

Emmzi

I'd find slowdog's thread - blackpool not a great place to own a hotel atm, but he got some great advice!

carefullycautious

I think you will struggle to get someone to invest 50,000 for an hotel room if it is placed next to a nursing home.

The future seems to be nursing homes/sheltered retirement homes.

advice4europe

Emmzi wrote: »

I'd find slowdog's thread - blackpool not a great place to own a hotel atm, but he got some great advice!

Thanks - I will certainly look that up.