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Purchase of a hotel room in Central London

(5 Posts)
fruitqueen Mon 24-Feb-14 16:47:30

I have been pondering on the possibility of the purchase of a hotel room in Central London offered on Rightmove. How safe are these investments? Would we be allowed to stay in it periodically? Since the property prices are so crazy now, this seems quite affordable. Anyone had any experience in these?

working3jobs Mon 24-Feb-14 21:22:23

never heard of this before.
so a hotel room would be permanently "booked" to you?
could you rent it out? how would it make you money?
(sorry if i'm being dumb)

HanSolo Mon 24-Feb-14 21:23:45

Is this like a timeshare? How much are the service charges?

thegraduand Tue 25-Feb-14 12:40:50

There were a few really popular schemes like that about 10 yrs ago. I've not seen them for a long time, so I'm not sure how well they worked or how popular they are. I think if they had been good, they would have become a lot more popular. I think you may well struggle with re-sale and you need to ask for strong evidence of investment returns

Sunnyshores Wed 26-Feb-14 09:57:40

I've looked into a few of these schemes and in theory they are a good investment - you buy a room for x and then take a share of the profits (10% yield in some cases) - either on that specific room, or on the hotel as a whole.

BUT it does depend on the company which is running the hotel and whether they are capable of maintaining the property and keeping occupancy levels up. The room would be hard to sell on, impossible if the returns arent as promised.

I would seek independent advice from someone like an IFA and do alot of research into the actual company behind the scheme and be very cautious.

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