fao brokers/advisors; buy-to-let hotel room finance?

HelpWhereIcan

tucbiscuit wrote: »

the one I am looking at guarentees a minimum 10% return for the first 2 years,

A 2 year rent guarantee is great, but remember - you (and your kids) could own the room for a lot longer than 2 years. Will things stack up after that?

Not that I am saying it is the case with this developer, but my experience especially, for example, in the overseas property market is that a developer can often cover the price of that 2 year guarantee just by increasing the price a bit.

Ignore the rent guarantee as anything but a cherry on the top - examine the prospect based on everything but.

tucbiscuit wrote: »

but there are still a lot of things I nedd to find out

From reading the other post, I gather you have looked at the ones in Hull. I have to say (being from the area) that I am intregued by the developments (actually had one of their guys coming to see me to see if I would offer them to my customers - but he did not show for the appointment).

They are quite right that Hull severely lacks a high quality hotel and traditionally has had one 3/4* Holiday Inn, a small Jarvis and some independant ones all around the 'good 3*' level.

Some business travellers would therefore stay in York/Leeds and travel to Hull. Things have changed slightly over the last 18 mths with a Village Hotel and new Holiday Express opening, but the city still lacks a proper 4* plus hotel (which is astonishing for the 7th largest city in England).

I know the sites of 'The Institute' (drank in there many times) and the Pods. Both very nice buildings with a lot of character. Central and ideally located for the things that Hull has to offer.

The plans I have seen are very nice and would almost certainly corner the market in Hull as very little competition. From what I have been told, the management brought in to run the Institute are top quality and the developer is very serious about making it work and has attracted a lot of local media attention.

Now comes the but. Some of the major companies that may attract business visitors:

Birds Eye - closing down
Smith & Nephew - constantly subject of closure rumours
Bae Systems - in turmoil - possibly wit 3 mths left - after losing a Hawk contract

However:

Comet - Hull company, here to stay
Hygena - as above
Arco - very big player in the city
Reckitt Benkiser - as above
Ideal Standard/Armitage Shanks - seem secure now taken over
Caradon Ideal Boilers - Seem secure
Seven Seas - seem secure

The recent development of the city centre (St Stephens and the City/Paragon Exchange) have been very impressive and the plans for the Quay West Development are staggering. The city is showing some ambition to become a regional player (for the first time ever). Has transport links to the continent and is looking to entice people who arrive on the ferry to stop over rather than just shoot through to Leeds/Manchester etc.

Just some of my thoughts on the area - but you need to keep your own counsel.

EdInvestor

What''s the exit strategy should you discover that the invstment isn't producing adequate rental income and you are up for continued high maintenace and (no doubt increasing) service charges?

tucbiscuit

HelpWhereIcan wrote: »

A 2 year rent guarantee is great, but remember - you (and your kids) could own the room for a lot longer than 2 years. Will things stack up after that?

Not that I am saying it is the case with this developer, but my experience especially, for example, in the overseas property market is that a developer can often cover the price of that 2 year guarantee just by increasing the price a bit.

Ignore the rent guarantee as anything but a cherry on the top - examine the prospect based on everything but.



From reading the other post, I gather you have looked at the ones in Hull. I have to say (being from the area) that I am intregued by the developments (actually had one of their guys coming to see me to see if I would offer them to my customers - but he did not show for the appointment).

They are quite right that Hull severely lacks a high quality hotel and traditionally has had one 3/4* Holiday Inn, a small Jarvis and some independant ones all around the 'good 3*' level.

Some business travellers would therefore stay in York/Leeds and travel to Hull. Things have changed slightly over the last 18 mths with a Village Hotel and new Holiday Express opening, but the city still lacks a proper 4* plus hotel (which is astonishing for the 7th largest city in England).

I know the sites of 'The Institute' (drank in there many times) and the Pods. Both very nice buildings with a lot of character. Central and ideally located for the things that Hull has to offer.

The plans I have seen are very nice and would almost certainly corner the market in Hull as very little competition. From what I have been told, the management brought in to run the Institute are top quality and the developer is very serious about making it work and has attracted a lot of local media attention.

Now comes the but. Some of the major companies that may attract business visitors:

Birds Eye - closing down
Smith & Nephew - constantly subject of closure rumours
Bae Systems - in turmoil - possibly wit 3 mths left - after losing a Hawk contract

However:

Comet - Hull company, here to stay
Hygena - as above
Arco - very big player in the city
Reckitt Benkiser - as above
Ideal Standard/Armitage Shanks - seem secure now taken over
Caradon Ideal Boilers - Seem secure
Seven Seas - seem secure

The recent development of the city centre (St Stephens and the City/Paragon Exchange) have been very impressive and the plans for the Quay West Development are staggering. The city is showing some ambition to become a regional player (for the first time ever). Has transport links to the continent and is looking to entice people who arrive on the ferry to stop over rather than just shoot through to Leeds/Manchester etc.

Just some of my thoughts on the area - but you need to keep your own counsel.

thanks for that post, very helpful

I think a lot is going to depend on how easily and at what rate I can get finance.

I must admit I like the idea though and have to make sure I see it from a business point of view rather than "wouldn't it be nice to own a hotel room" point of view.

thanks though

Browntoa

smullen and smullen ,wow, an international seller with only a mobile number as a contact !!

no contact address and web site only registered a week ago

web site registered to a semi in Ormskirk, Lancashire, which is the web disgners address

this looks like spam to me, would not trust money to a site with a mobile number for a contact and not registered to provide Mortgages or investment advice