buy-to-let hotel rooms?

silvercar

There was an article on this in Saturday's Times. The first two hotels in London did really well with capital growth, easy resale and good rental income. The article pointed out that location was crucial to the success.

tucbiscuit

thanks for some of the replies


from what I can see, even if your room is empty, you get paid a share of whatever rooms are full





and to some people who seem overly negative, I was just inquiring and throwing something out there to discuss, not saying it is amazing or anything, I don't know much about it and probably nor do you, so kiss my ******* ****

Ewarwoowar2

tucbiscuit wrote: »

and to some people who seem overly negative, I was just inquiring and throwing something out there to discuss, not saying it is amazing or anything, I don't know much about it and probably nor do you, so kiss my ******* ****

You're welcome.

epz_2

tucbiscuit wrote: »

thanks for some of the replies


from what I can see, even if your room is empty, you get paid a share of whatever rooms are full

if you are getting a share of all the hotel rooms income then you are basicly just buying a share in the hotel, posibly with the product packaged in a way that would let the bank lend you cash on it.

lynzpower

from what I can see, even if your room is empty, you get paid a share of whatever rooms are full

So if you are someone who has bought the top category room for say 400k, and someone else has bought the poky lil one near the extrctor for 200- the 400 one always full cos its the nicest but owner of that has to share out with you?

Seems a bit unfair to me!

tucbiscuit

I think there is some sort of formula to work out the fair shares, to stop people bunging the manager a few quid to make sure their room is always full.

So if two people have equivalent rooms, they get equivalent money, even if one happens to be let more than the other.

Guy_Montag

tucbiscuit wrote: »

thanks for some of the replies


from what I can see, even if your room is empty, you get paid a share of whatever rooms are full


and to some people who seem overly negative, I was just inquiring and throwing something out there to discuss, not saying it is amazing or anything, I don't know much about it and probably nor do you, so kiss my ******* ****

I'm not sure why you are attacking people who are negative about this, it's just their opinion & you did kinda ask for opinions, didn't you?


There's no point in only getting the positive side of the story, you need to look at both sides to make a decent judgement.

Personally I think this would be an appalling waste of money, unless you:
1) get in early & get out early (think .com shares)
2) pick your location with great care (so that if you don't get out you'll not be stuffed).
3) don't waste your investment using it yourself (N.B. Have you checked out t&cs which may include buying overpriced meals if you use your free stay in the hotel?)

The way I see it, this is a great way for the hotel to share risk; if they do it well enough they'll share the risk so well that it matters not if they let any rooms, they can't lose.

Will you be able to raise a mortgage on this post-NR?

santashelper_2

what would concern me is if they see they are making a lot of money from their business why are they prepared to sell some of it since when have business like people given away the opportunity to other people unless there is a good reason on their part behind it.

nobblyned

tucbiscuit wrote: »

thanks for some of the replies


from what I can see, even if your room is empty, you get paid a share of whatever rooms are full





and to some people who seem overly negative, I was just inquiring and throwing something out there to discuss, not saying it is amazing or anything, I don't know much about it and probably nor do you, so kiss my ******* ****

Wow, you're a bit of an odd ball aren't you?

Ask for opinions, and then tell the people that don't agree with you eff off.

If you only want to interact with people that agree with you, there's probably a mirror in your bathroom you could use.

tucbiscuit

lol, yeah, that was a bit over the top, so apologies