First Press Release
ROOM TO INVEST EXPANDS HOTEL OFFERING
Room to Invest (“RTI”), the company offering hotel rooms as invetments in foreign cities and property hotspots as an alternative to the floundering commercial UK property market, has acquired another hotel.
It has bought Riad in Morocco and is currently in final negotiations for hotels in Southern Spain, Prague and Northern Ireland adding another 145 rooms to its offering to investors who wish to have the opportunity to enjoy rental income and capital growth for a minimum investment of £4,500.
The investment is also SIPPable. However, if investors choose not to take advantage of the SIPP route they will be entitled 21 days free accommodation in any Room to Invest group hotel.
RTI is the brainchild of entrepreneur Renwick Haddow, original founder of AIM–traded Arc Fund Management, and is a subsidiary of Capital Ideas Ltd.
It is currently in final negotiations to buy an hotel in the Czech Republic's capital Prague and an hotel in Russia's St Petersburg. It is looking also at other opportunities mainly in the growing economies of Eastern and Central Europe.
Apart from the potential for capital growth RTI is estimating an annual income for shareholders of 7.5 per cent, which is being guaranteed to initial investors for the first year, and a 10 per cent discount on rooms in future Room to Invest International Limited hotels. All shareholders will benefit from profits made on any future sale of the hotels.
After holding their investment for 12 months, investors will be able to sell their holding and RTI will help to find a buyer.
RTI Chairman, Renwick Haddow, said: “;With the UK property market in the doldrums we believe this is a good time to invest abroad. We will only be investing in hotels that are profitable, have good occupancy rates and, in some cases, have room for expansion.
“RTI will be responsible for all management, operational and maintenance costs, so there are no hidden charges and will also help people who wish to sell by sourcing buyers. All our hotels will be all season with strong occupancy rates throughout the year”.
He said similar schemes have been launched in the UK over the last two to three years which have proved popular with investors. However they are aimed at the ultra high net worth individual with minimum investments of around £200,000. The focus of these schemes has been predominately on London.
“Room to Invest opens up the investment opportunity to the ordinary investor and focuses on property hotspots where prices are expected to remain strong. Other countries we have identified as promising are Montenegro, Croatia, Poland, Romania, and the Ukraine”