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A room of your own

Published: 01/03/2006 - Filed under: Archive » 2006 » March 2006 » Special reports » Features » Special Reports »

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Staying in hotels on business is either a necessary evil or – sometimes – an unexpected pleasure, but there's no doubt that the more you do it, the more particular you become over the room you choose. You might specify one with a view, or facing an internal courtyard for the peace and quiet. You might want one on the first or second floor so you don't have to wait for the lift or one with that larger-than-usual bathtub where you get some of your most important thinking done. Whatever the preference, though, it would be wonderful to have a place you could stay in that was truly your own. And now that is possible.

Guest Invest is the UK's first hotel room buy-to-let scheme, and it is simplicity itself. Buy your own room in a hotel, use it for up to 52 days each year, paying only between £10 and £20 for laundry and cleaning charges, and the rest of the time it will be rented out just as any other hotel room – except that the revenue generated is split 50/50 between you and the hotel. What's particularly worth noting about this is that the scheme has avoided the recent U-turn on residential property in Self Invested Personal Pensions (SIPPs), as the investment is considered to be one in commercial property. (Although, investors forgo the right to use the room when purchasing through a SIPP.) Room prices start at £175,000 for a single room while a double is £250,000.

Guest Invest's debut property, the 20-room Guesthouse West in Notting Hill, was launched in April 2004 and has since netted investors a healthy income of 6.5 per cent per annum, according to the company. There has also been a further 10 per cent growth on their initial investment. As a result, a new £35 million property redevelopment – Nest, which will open in 2007 minutes from Paddington station – will add a further 170 rooms to its property portfolio. The rooms are already being sold off-plan, with investors perhaps attracted as much by the complimentary membership of London members' club Home House and 24-hour concierge service as the investment possibilities.

Johnny Sandelson, founder and CEO of Guest Invest, says: "The fact that Guest Invest is a recommended SIPP investment makes it an attractive and tax-friendly proposition. We aren't dependent on it, though. We appeal to many groups: those from overseas who want a place in town, those who live in the country who want a pied à terre, those who are commercial property investors, and even companies wanting a cost-effective place to stay and an investment."

The attention to detail in the rooms is impressive, with shipfitters Pendennis being used both for their craftsmanship, the hard-wearing nature of their choice of materials and their ability to fit an awful lot into the available space.

The management team for the new hotels are being trained by the team currently operating the Guest House West property, although Sandelson does not rule out using the services of a well-known management chain in forthcoming properties.

A sample room has been on show at Paddington station, and now at Guest Invest's showrooms in St James', London, where rooms can be viewed and purchased off-plan. Guest Invest also plans to offer a global hotel room exchange programme – first to market will be hotels across Asia.

For further information, call +44 (0)20 7747 6880 or visit guestinvest.com.

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