How it works

Room to Invest purchases complete hotel operations in desirable locations that show potential capital growth and good income.

Capital – Price of Room rights

For example a hotel with 20 rooms costs £2m to buy. Therefore each room is worth £100,000 (£2m divided by 20 rooms equals £100,000).

Each room is then divided in 52 week fractions. Therefore £100,000 divided by 52 is £1,923. So each fraction is worth £1,923.

Each investor will be entitled to a proportion of the sale proceeds solely attributable to his Hotel room(s) if the Hotel is sold.

Alternatively investors are free to dispose of their room(s) or room rights through Room to Invest’s established trading platform (or another third party).

Income element

For the first 3 years, investors are paid a guaranteed income of 8%. After that investors receive income based on the occupancy of the hotel. This is determined by a rotational room reservation system that ensures all rooms are allocated on a fair basis.

Each seven night period will be allocated at random with a different week in the season to ensure that investors' are not unfairly prejudiced in terms of their income

Over the seven night period investors receive up to 75% of the room income generated by guests staying in their allocated room. Only paying guests will be allocated to investors rooms.

We predict the investors annual income from occupancy of both hotels will be 10% per annum.