Buying a hotel room

(3 Posts)
Threesoundslikealot Tue 15-Nov-16 23:38:12

Just curious really. I spend two nights a week in London for work and currently stay with different friends each time. I'm looking at (not very - ha!) cheap flats to buy and see quite a few hotel rooms 'for sale'.

Does anyone know whether these definitely deliver the yield they promise? And does the 'owner' have any right to use the room instead of a paying guest? How do they work?

wooooofudge Wed 16-Nov-16 16:46:28

This sounds like the 'invest in a car-parking space' scams schemes. The investment is usually overpriced and may well not appreciate in value as set out in the sales pitch. With hotel rooms, there is no established resale market. You may find it difficult to get a mortgage for such a scheme as lenders treat this as riskier than buy-to-let.

Threesoundslikealot Wed 16-Nov-16 17:36:35

Oh, it's cash-only.

Yes, not really for me for the reasons you state. Way too much money to invest in central London with virtually no return, and what if the hotel went bust? I just wondered if I was missing something, and the hotel is so convenient for work...

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