Scam. No one can guarantee an income for 15 years. The hotel could close down, a motorway might be built through the middle of it, a better hotel could open up next door. It could go bankrupt. There are a huge amount of variables.

Run away. Someone will make money out of it and it won't be you.

UK

Rather than wonder what happens to the poor hotel if they have a low week here and there as far as guests go I'd be asking myself how long into this 'deal' would the hotel bill me for ￡10K to refurbish the room or repair the roof,have the place rewired etc etc. Then how long after that will the whole structure be compulsorily purchased by its local authority for peanuts to build a new estate. My last question to myself would be why did I even look at this in the first place...

Hotel investment is fairly new in UK and I have come into a little bit of money and was looking to invest in property. Someone I know said about hotel room investment as it has a much higher net yield than buy to let. I have been doing my research and im struggling to see what my risks are here, when the hotel i was looking at has a min 10% Guaranteed Rental Yield for 15 years and it also has exit stratergy were the hotel is also Guaranteed to buy back your room you invested at 100% your purchase price if your not happy within the 15 years.

first what are my risks here and also how can the hotel guarantee 10% net income a year for 15 years? I dont get it what happens if the hotel has a bad month with low guest staying?

also how is the hotel making money from all this ?

Many thanks for anyones help in advance