UK Landlord Forum / Life

http://www.guestinvest.com/

Any thoughts?


V

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Yes yes yes yes, i am glad that someone else has seen this kind of thing
A local hotel near me closed and then opened a few months later offering room lets, the rooms where 120£ a week

I see these ones are for sale, lol, um not interested, but hey it seems very popular

Someone approached me about investing in a hotel room in London a few years ago. I can't remember any of the details. But the prices were a bit too much for me.

It says that owners got a return of over 8%, which isn't bad. But I don't think I would feel comfortable spending that much on a hotel room. "Hotel Rooms are now available for sale from £291,000."

Wouldn't you rather own a house, even if the return isn't so great? However, in the longrun, I think a house will be more beneficial.

Yes I must admit I hadn't expected the initial outlay to be so high when I saw the ad on the tube. For the amount of money they're charging you could buy a whole house in a non-central location. The guys setting this up have a very strong business model (if they're actually achieving sales) because £290K for a room is a joke, its leasehold (so they never have to sign over the property) and they still make half the profit of all the room bookings.

Interesting venture.

Anyone ever thought about running a hotel or hostel? I think its hard work but might be quite lucrative if you own the hotel yourself. Only downer is how to learn the trade first - back to £15K a year to learn the business from the inside. Maybe.


V

Running a hostel could be quite lucrative, I agree. Never looked into it, though.

Hard work defo, 24/7 people

I must admit my gameplan would be more along the lines of open a hostel, build it up (involves 24/7 at this stage) then employ a hostel manager along with the other support staff, open another hostel, build it up ...

You get the picture. If any given hostel isn't sufficiently lucrative to cover the costs of the necessary staff and manager, it isn't a viable business. After all, if I don't employ someone I'll effectively be "employing myself", and if the money I'd get isn't enough to pay someone else why the hell would I do it?


V

There are loads of hostels in London, they do pretty well. But the actual property must cost a fortune.