Buy-to-Let Hotel Room

Buy-to-Let Hotel Room

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type-r

Original Poster:

14,100 posts

214 months

Saturday 24th January 2015
quotequote all
I've seen a few ads recently on buy-to-let investments around the city of London. Has anyone invested in hotel rooms? They are advertising a return of 5-6%.

How does it work? So you purchase a room, presumably the hotel takes cares of renting out the room to hotel guests as per usual and the cleaning and repairs etc. Is there a surcharge for this?

Also are these rooms sold on leasehold or share of freehold basis and do the usual service charge and ground rent still apply?

type-r

Original Poster:

14,100 posts

214 months

Saturday 24th January 2015
quotequote all
Sounds like a No, I think. I have seen those student buy-to-let propositions also with so-called "guaranteed" yields of 10% net. Hmm. Seemed way too good to be true.

Back to traditional buy-to-let then.