Hey Liam, the lack of track record is one thing. But the reason I have steered away from hotel room investments is mainly the lack of control and trust in the companies running them. Having said that, not all companies are the same and I’m sure there are some doing a good job returning capital to investors. However, I have not come across a company yet that I know well enough to recommend.

I believe you need a company with a good long track record in flipping and managing hotels and no frequent management changes. I’d also visit the hotel and hear from them directly. Hope that helps!

Hi Joshi, thanks for your insightful comment. Exiting early from this sort of structure looks like a pain. I believe you’d have to agree with another buyer and potentially have the management company agree to this too?

My biggest concern is trust in such a scheme. Unless you really know the management, 5 years is a long horizon to put your trust behind a company without an exit route.

Did you get your capital back plus the % bonus as usually agreed?

Yeah, too recent to have a trading history of such deals. But I’ll keep an eye… Thanks for your comment

Don’t think I will be investing, interesting post though, thanks

My understanding is that buying a hotel room is exempt from Stamp duty tax (up to £150,000) because it counts as commercial property. Impressive returns indeed! I like the fact that occupancy rate is really high across the UK, but beware of the risks!