Hotel room for sale, tell me what you think about this?

[LemonSunchines]

Builth Wells hotel room for sale, guide price 15k. Guaranteed rent. Have a look at the blurb & tell me what you think? I'm wondering how this works & what happens next time the river floods? Sales info here

I didn't even need this type of things existed. I haven't got anything real to add other than its quite interesting to me 😅

Are you on the hook for any refurbishment costs or other liabilities?

If it sounds too good to be true.......

I may be reading it wrong, but it seems you pay £60-£80k for the hotel room, but they can only guarantee £30k back in the first five years, then possibly another £30k in the next five years, then they buy it back off you for what you paid plus 10%?

So in total you pretty much double your money after 10 years? If that's right, it leads me to wonder why anyone would be selling it in the first place if they are essentially giving you a full refund plus interest in 10 years time AND missing out on the rental in the meantime.

As I said, I may be reading it completely wrong, I've never seen this before, it just strikes me as a bit odd!

This was a thing a few years ago, along with things like spaces in long term airport car parks, and self storage lots.

Lots of people lost lots of money.

Yes, I didn't think this was still going on.

Big scam. Know a couple of people that lost quite a bit of money from doing this.

Feels a bit timeshare to me. Its not a separate building title.

See also buying caravans on haven sites etc

oh I remember now
one of the oddities is you aren't allowed unlimited use of it yourself

I wonder if anyone did well out of it?

How do you grasp your asset from a legal perspective?

Do you have title to the individual hotel room?

Why are the hotel doing this?

Can they not raise cash from either a bank or equity provider?

If they have existing debt, has that lender consented tothe sale of the rooms?

If the event of bank calling debt/tax problem & revenue looking for payment will there be anything left for you?

I suspect you won't be a priority creditor and even if you are, I'm sure there are plenty more that rank ahead of you?

Have you seen the hotels trading financials? Specially the pre Covid trading figures? It is profitable? Liquid? Solvent? What is the value of the premises v current debt levels?

Why are they offer this? Why do they need to?

I don't think I've ever seen that pub flood, only their car park (it's quite a climb up from the river to the high street), but it's been a (long) while since I lived there!

Could believe the guaranteed income thanks to events on the show ground but have never seen anything like owning a hotel room and my mind boggles around all the different legal ramifications!

A fella did this with chalets near me, went bust, took everyone's money and fucked off. Proceed with caution.

Search for hotel room investment on money saving expert forums and it will quickly become clear just how bad an idea this is.