Has anyone invested in hotel rooms

molit

I've been looking at the kind of scheme with guaranteed rental and buy back. It looks like a good return, but it almost seems too good to be true. I understand mortgages might be ""difficult" but other than that, have people actually bought one and seen a return?

worried_jim

Big time scam.

molit

worried_jim wrote: »

Big time scam.

how does the scam work? does the hotel not exist, does the buyback not happen after a room is overvalued.....just curious

coastline

I've heard you can Bed and Breakfast them to save CGTax..

jimjames

molit wrote: »

how does the scam work? does the hotel not exist, does the buyback not happen after a room is overvalued.....just curious

All of the above

EdGasket

Has anyone invested in hotel rooms

....only for illicit sex

dunstonh

Has anyone invested in hotel rooms

Just ask all those scammed out of their money.

jimjames

Think about it logically. Why would any company divide up their estate into individual units if they can make a decent return on them anyway when the amount of admin and hassle that would go with that.
If you want to invest in hotel rooms then either buy a hotel yourself or buy shares in hotel groups

Pincher

https://www.marriott.co.uk/hotel-search/timeshare.hotels/

Why don't you stay in one, and talk to the people who own them,
because your neighbours are probably owners.

It's like the motor trade, there are good garages, and rip off garages. The problem is, you are at the mercy of the management, so you need to really know the wheat from the chaff.

I met a retired teacher, American, in Park City, Utah, who did rather well out of his portfolio of Marriott time shares. He was staying in his own time share.

Obviously Marriott makes money from managing it for you, but how else can it possibly work? At least, you know Marriott does the reservation, cleaning, guest services, and pay you.

I rent out an apartment, leasehold, and I pay £6,000 a year on service charge, to building management. God knows what they do for the money.

Anthorn

It's very MSE to scoff at anything new and regard it as a scam and that is graphically illustrated in this thread.

Pretty simple really: Build a hotel, sell the rooms at a profit and the cost of running the hotel including profit yet again is divided among all the room owners. Then build another hotel.

The room owners get to stay in their room for a set number of nights per year and the rest of the year it is rented earning the room owner a percentage of the price paid.

Rather like a time share in fact. But personally I would prefer a Tuscan villa rather than a room in Halifax!

http://www.thisismoney.co.uk/money/mortgageshome/article-1632020/Should-you-invest-in-a-hotel-room.html

bigadaj

Anthorn wrote: »

It's very MSE to scoff at anything new and regard it as a scam and that is graphically illustrated in this thread.

Pretty simple really: Build a hotel, sell the rooms at a profit and the cost of running the hotel including profit yet again is divided among all the room owners. Then build another hotel.

The room owners get to stay in their room for a set number of nights per year and the rest of the year it is rented earning the room owner a percentage of the price paid.

Rather like a time share in fact. But personally I would prefer a Tuscan villa rather than a room in Halifax!

http://www.thisismoney.co.uk/money/mortgageshome/article-1632020/Should-you-invest-in-a-hotel-room.html

Did you check the date in that daily mail article, and what happened to one of the two quoted companies some four months later?

Hotel room investments fall into the same box as airport car parking spaces, overseas forestry etc and rarely turn out well for investors.

We can only presume you will be filling your boots with this golden opprotunity and reporting back from you recently purchased Caribbean island.