Risk Warnings

Room to Invest considers that the factors and risks described below are the most significant and should be carefully considered together with all the information contained in this document, prior to deciding whether to invest. It should be noted that the risks described below may not be the only risks to your investment.

1. There can be no guarantee that the Company's objectives will be achieved. Any financial projections have been prepared internally by the Company and have not been audited. Any returns will be based on the timing and success of the Hotel's business and development, the increased acceptance of its services, its ability to successfully implement its hiring goals, the size of the market, general industry conditions and other matters. Many of these factors relate to matters beyond the Company's control and they are susceptible to wide variation. To the extent that the Hotel's actual experience differs from any one or more of these factors its occupancy rates, room charges and freehold value will differ. Such differences may be material.
2. The Company will not be successful if it loses customers to its competitors. The Company's major competitors may have significantly greater financial resources than those available to the Company. There is no guarantee that the Hotel will be able to achieve its projected level of room occupancy or that there will be any occupants in your allocated week each year in which case you will not receive any income for that year.
3. Your investment will not be listed or dealt on any stock exchange. There is no guarantee that there will be a secondary market for your investment which may be difficult to realise. Your agreement is with the Company (not Room to Invest or Capital Ideas). If the Hotel suffers financial difficulties you may lose your investment.
4. The value of your investment may go down as well as up. Investors may, therefore, realise less than their original investment. The price of your investment may not reflect the underlying value of your allocated hotel room and you could get back nothing at all.
5. Because of the risks involved, investment in Room Rights may only be suitable for investors who are able to lose a substantial portion or even all the money they invest in the Company; understand the high degree of risk involved; believe that the investment is suitable based upon their investment objectives and financial needs; and have no need for liquidity of investment. A prospective investor should consider carefully whether an investment in the Company is suitable for him in the light of his personal circumstances and available financial resources.
6. The Hotel's performance is substantially dependent upon the retention of key personnel. The loss of the services of any of the management team or other key personnel could damage the business of the Company. Equally the ability to attract new employees with the appropriate expertise and skills cannot be guaranteed. The Company may experience difficulties in hiring appropriate employees and the failure to do so may have a detrimental effect upon the trading performance of the Hotel.
7. Your investment is intended to produce income and capital growth but may fall in value. There is no guarantee that the Hotel will be sold at a sufficient profit to generate any returns for investors or that you will be able to sell your investment to a third party. In such circumstances investors may not realise any return on their original investment. Investors should note that their investment is not suitable as a short-term investment and if the Hotel is sold investors will not be entitled to any future income from the Company or Room to Invest.
8. Investors will receive income from their Hotel room(s) gross provided it is deemed “other income” as defined in relevant Hungarian tax law. Changes to UK and/or Hungarian taxation laws (and/or the interpretation of such laws) may adversely affect investor returns.