Sleeping investment

4:28pm Thursday 17th April 2008

SINCE its launch two years ago, the popularity of GuestInvest, the concept of buying a room in a luxury hotel in the City, has rocketed, leading to the company behind the hotel-to-let scheme expanding.

GuestInvest is the brainchild of entrepreneurial property developer Johnny Sandelson, who founded the scheme in 2003, heralding the birth of the hotel-to-let concept.

Following the success of GuestInvest, which allows investors to purchase a room in upmarket hotels, receiving 50 per cent of its rental income and benefiting from staying there free of charge for 52 days of the year, Johnny and his team are preparing to open their fifth hotel.

The latest addition to the GuestInvest empire is The Jones, located in Bayswater, which is undergoing a multi-million pound restoration and is due to open in the summer.

Designed in 1906 by Mewes and Davies, who were applauded for the construction of the London Ritz, The Jones is a Grade II-listed building situated adjacent to Hyde Park and neighbouring the fashionable district of Notting Hill.

Rooms are available to buy from £317,750 and come with a GuestInvest guarantee of a net return in the first year of operation, which is music to any investors' ears.

In addition, investors receive a 999-year lease and the investment can even be added to a self-invested personal pension (SIPP), so income and any capital growth are tax-free.

Transporting the concept across the Atlantic, Johnny opened the debut GuestInvest hotel in April 2004. Guesthouse West generated a great deal of media interest as it was the first of its kind in the UK and the rooms were sold within weeks with owners seeing a net profit of 8.32 per cent in the last year.

As the popularity of concept grew, so did its demand and GuestInvest added a further three hotels to its portfolio, including Nest in Bayswater, Chiswell Street Hotel in the heart of the City and Blakes in Kensington.

Sandeep Singh Sirah, the owner of a London-based IT company, purchased a room in GuestInvest's second hotel, Nest.

Bought as an investment opportunity, Sandeep is safe in the knowledge the room will be fully maintained and run by an experienced management team.

Sandeep already had a small portfolio of buy-to-let properties and was attracted to GuestInvest because of the hassle-free proposition it presented, coupled with the prospect of impressive returns.

He said: "While I may not personally stay in my room due to my residence in London, it's perfect for me to be able to invite friends, family and clients to stay - especially during the holidays.

"I'm sure my friends and family will act as advocates for Nest, and since I now own a stake, that's quite important."

He added: "If I don't use my allocation of free nights, they don't go to waste - it simply increases my number of let-able nights and therefore my investment's revenue potential."

The latest addition, The Jones, is set to be one of the best hotels in Bayswater - an area of London attracting ever greater numbers of visitors and investors.

With rooms officially on sale, GuestInvest is offering potential investors the opportunity to view the prototype hotel room while the restoration takes place.

For more information, visit guestinvest.com

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