BTL hotel rooms

ollyshaw

Is it jsut me or does this seem like a mad idea? £250k for a room you can use 52 days?

http://money.guardian.co.uk/news_/story/0,,2001108,00.html

Olly

cattie

This can actually save companies that use high quality hotels for clients quite a lot of money, which is where a lot of interest is coming from.

Near where I used to live a central hotel was built & suites were sold to investors & companies who would be interested & the demand exceeded supply.

lynzpower

I must say, I see these advertised all around in london and think its mad, but now you mention it cattie, it has to be companies who buyt them I cant see the appeal for the individual??

lswwong

I got invited to check out some of these offers - Galliard Homes building 2 Park Plaza brand hotels in Waterloo. At the time of the exhibition it was not mentioned that the hotels were going to be managed by Park Plaza - a good enough hotel brand. Otherwise I might have thought more of the idea! What bothered me at the time was the sales people obviously had to sell hard but they only concentrated on the properties side of the deal. Since these rooms were going to make up a business concerned called a "hotel" (oh dear, I am sounding sacarstic here), I naturally asked them how the hotel was going to be managed, run and marketed. The sales team had absolutely no idea! All they could say to me was that these rooms were being sold for investment and that was that ......

To my mind, the key things are: location and hotel business management. No point at all in buying a hotel room and subsequently not being able to make money from it. What's more, the investor has to rely on the hotel business to run it well and consistently otherwise what's the point in having these rooms? I was just amazed that the said sales people did not focus on this aspect as their main selling point.

Think 250K is a hefty investment purely for the sake of the 52 free days' occupation per year. Must couple this with rental income and capital gains returns when considering. But if a company is buying then I can see it becomes an interesting proposition if they can hold the investment for a couple of years. Hotel rooms are sooooooooo expensive in London!

chant1l

The hotel isn't all of a sudden going to become more successful because of the ownership type, so the risk element is much higher than traditional BTL. If the hotel goes under in 10 years you will have zero, if a house doesnt rent I can at least sell it or rent it for less. I have options, there are none here.