Hotel Room Ownership – Buy A Room From £22,000.
Fullshare NOT Timeshare.
The Old Keil Hotel, Mull of Kintyre – (Now Sold ) (c) 2001 Unique Property Bulletin.
Would you like to own a hotel room 100% outright? A solid asset to holiday in. Plus a useful income if you want to rent it out when you are not on holiday there yourself? Sure beats spending a small fortune on a static caravan to holiday at. Flimsy caravans may rot and become worthless after 25 years. You can also get billed for £2,000 caravan site fees for each of those 25 years. Hotels last for hundreds of years, and provide a very real asset to own, and the asset value is usually stable. Surely better to have a bricks and mortar holiday sanctuary that can also pay you a useful income, rather than a tin box caravan that drains the bank account in fees ?
Curious? We were. So much so we tried out the theory in real life. So far our small group has bought (and sold) four hotels in this adventure. Below is a summary of the what, where, why and how of this hotel-room-ownership initiative. If you would like to follow the thing in more detail, please click on the “next page” link at the foot of each page. Also feel free to ask any questions via our email Contact Page Click Here and we shall do our best to answer. Now for the summary:-
Back in 1999 the original idea was to locate, buy and reopen a closed hotel. The business model was unusual – to do this by grouping some friends and colleagues together, then each person/family would own one (or more) hotel bedrooms in that hotel. The aim was to bring each hotel back to life, whilst at the same time each of us owning a bedroom in the hotel. Not timeshare, but 100% fullshare. The hotel rooms would be wholly owned by the individual with the comfort of the best quality of legal title possible – HM Land Registry – in whichever country the respective hotels were bought in. Each hotel-room-owner can stay for holidays in their room as often as they like, and when they like. Each hotel room owner has the option, if they so choose, to rent out their room (this can be managed – on site – for room owners if desired). Thereby deriving a useful income. Now in 2012/2013 we are returning to the idea, and hope to find more adventures like those enjoyed between 1999 and 2003.
We were aiming to buy four hotels. In fact we did. The earlier problem was each time we bought a hotel, such was the very competitive price we negotiated, we would end up with a significantly higher offer to resell our newly acquired hotel. So, each of the four hotels bought, ended up being sold. Substantial surplus after surplus and lots of enhanced cheques from the solicitors to members. Many happy faces in our small group! The surplus paid back to members by our solicitors was used for some very diverse, and often interesting projects. More of that later. For now we are intending to buy and keep our next hotel to establish the veracity of the hotel-room-ownership idea long term.
The next purchase is likely to be in the Highlands of Scotland where, in the summer, it is a hidden sunspot. This is true. The writer of this webpage has been struck with sunstroke (not sunburn) twice in ten years in the Highlands. Because of Arctic Circle proximity and earth axis seasonal shift, the north of Scotland in summer can regularly be very sunny and hot. But please keep that a secret. We don’t want the place to end up like the overly busy suntrap resorts in southern Spain!
The second hotel is likely to be on the southern sea coast of England – Cornwall, Devon, Dorset, Hampshire, Sussex, Kent - possibly the Isle of Wight or the Scilly Isles; the third hotel, by popular demand, seems destined to be in Wales – possibly the Island of Anglesey; the fourth hotel in southern France. All on the basis of the hotel-room-ownership principle. If you find any interesting hotels to consider buying between our group in any of the four countries mentioned, please email us with suggestions about these so we can see if they might work for our collective hotel buying group. Thankyou.
As indicated, the idea first started out as an effort to reopen closed hotels. However, it soon became apparent within the founding group of friends that the hotel-room-ownership idea would have an additional attraction. A solid bricks and mortar investment, often at incredibly low prices, and structurally far better than a holiday caravan has been attractive to our members. Better still, hotel rooms can have an annual income derived from being let out when not in use by each owner. There is virtually no depreciation on a hotel building, and the thorny issue of caravan sight owner fees does not drain precious resources.
Disarmingly simple. There are, sadly, many closed hotels to choose from. Once a suitable candidate hotel has been found, inspected and surveyed, the members of our group that wish to buy a room have first refusal. We don’t buy the hotel until a sufficient amount of bedrooms have been contractually underwritten. The problem we had with our first four hotels bought between 1999 and 2003, is shortly after the purchase of the whole hotel, we received substantially higher offers for each complete building. The group consensus was to sell, and simply look for another bargain hotel to buy.
This time round we are determined to keep the hotel and test the hotel-room-ownership idea thoroughly. It is certainly permissible for those members who wish to sell their own, owned room or rooms on at a profit if they wish. Indeed one member has already said he would like to buy two rooms in the current hotel project as his view is the resale value may follow previous purchase and sales, and the hotel room values will go up. His intention is to sell one room on after about a year at a profit, and end up keeping the second room which will be a long term investment.
Though for clarity, our next whole hotel building is a “keeper”. We will not be accepting any offer to resell the whole building. Just the individual bedrooms. This is because we have a core membership wishing to try the hotel-room-ownership idea.
How this is done, is that each member pops along to view the hotel we are considering purchasing. They are accompanied by a keyholder, NOT by high pressure sales people – we do NOT like that, nor do that sort of thing. This project is different. It is a gentle process and one progressed by mutual agreement, not driven by sales people. The keyholder is exactly that. A caretaker person who will sort out full access to the various rooms and no more. They will NOT be trying to sell anybody anything.
Next, any questions, figures, details asked by the member concerned we shall answer to the best of our ability. Though we would recommend folk read and study this website as comprehensively as possible first.
Then, if a room has been chosen and the prospective group member wishes to buy that room, they are put in touch with the solicitor and the solicitor will handle any funds and title deeds for the specific room. More details further on in this website.
The question may arise about when? Our original four hotels bought, were between 1999 and 2003. We are now looking at renewing this endeavour. The answer to “when” is “now” !
If you interest is aroused, please feel free to read on by clicking the link for the next page ….
Please note: The photograph above, on this particular webpage - the big white Art Deco hotel is of the first building we bought in 1999. That was the Keil Hotel, and has been sold by us. It is no longer available. We have shown the property so as to give an idea of the sort of hotels we have previously bought.