Released on: December 6, 2007, 8:27 am

Press Release Author: Jim watson

Industry: Real Estate

Press Release Summary: Buy-to-let has come a long way since the term was first
coined in the 1990s. It\'s not just that the market has grown massively during that
time.



Press Release Body: Buy-to-let has come a long way since the term was first coined
in the 1990s. It\'s not just that the market has grown massively during that time, or
that savvy investors have enjoyed large returns; the market has also seen
diversification in all manner of ways.

Where once the market was about houses and flats, now new schemes are emerging, one
interesting new venture being buy-to-let for hotel rooms.

This has been launched by Guestinvest, a buy-to-let hotel company launched in 2004
which works on the basis of selling individual rooms to investors. The firm started
with the Guesthouse West in the west London district of Notting Hill. Now it is to
launch another such venture near Paddington Station. As This is Money stated at the
time, the investment works by allowing those who buy a room a 50 per cent share in
the income generated from the room, along with the right to use it for up to 52 days
a year for just £10 a night.

Johnny Sandelson, the chief executive officer of Guestinvest, explained that this
type of investment appealed to three classes of investors: lifestyle investors who
enjoyed having a room in a central London location, those simply after financial
gain and those investing as part of a self-invested personal pension (Sipp).
However, this last option does have one disadvantage: \"Investors who purchase a room
through a Sipp are unable to stay for free and must pay commercial rates to stay in
their room in order to qualify for the tax benefits associated with Sipp
investments.\"

However, Mr Sandelson explained, the returns were good, with those who paid £235,000
for a room in the Notting Hill hotel \"guaranteed a six per cent return during the
hotel\'s first year of operation.\" Furthermore, he added, \"Investors have earned in
excess of eight per cent in the first two years of ownership, with those who have
since sold their rooms netting a minimum capital growth of ten per cent.\"

All in all, Mr Sandelson suggested, this was a good way to invest, with the hotel
industry likely to outperform the commercial property in the next few years and the
lack of any need to manage the property making it \"hassle free\".

The company is certainly looking to expand further, with CatererSearch reporting
that it is planning to develop two more London hotels in this fashion - the Nest in
Bayswater and the Chiswell Street Hotel in the City.

If buy-to-let hotels take off, it will be no surprise to see other companies
following, with this novel sector in the industry perhaps becoming the new way to
enjoy a good return on investments.

In today\'s world Property investment is an excellent investment option especially
investment in UK

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