Honchos Can Lease A Hotel Room At Rs 2 Crore For 999 Years, Rent It In Their Absence &share Profit
GLOBETROTING corporate executives or highflying entrepreneurs need not look for a hotel during their next visit to London on a business or pleasure trip.
They can walk straight into their own ready-to-stay hotel room in the heart of the city. A London-based real estate firm, GuestInvest, will soon offer Indians the option to own on a 999-years lease a hotel room in the city giving them the right to stay for 52 days in a year, and take a share of the income it earns from guests for the rest of the time, all for £ 2, 65,000 (around Rs 2 crore).
If things go as planned, hotel rooms in Mumbai and Delhi would also be on offer through a similar scheme targeted specifically at nonresident Indians based in United Kingdom by February next year.
For owning a room costing an average£ 2, 65,000 in a London-based hotel at Paddington Station – to be ready by March 2007 – one has to fork out £ 5000 to start with and pay around 35% over the balance at the time of possession.
One gets free accommodation for 52 days in year or one day each week. For the remaining 313 days, GuestInverst, which manages the property, will rent in out like an y other hotel and share 50% of the owner. In addition, one has to pay %500 annually as part of a sinking fund for maintenance. So if the room is occupied for all of 313 days, one can earn around £60 per night on an average room rate of £120. So one gets to make a maximum of £18,500 per year.
“Our idea is to create a global market for the hotel sector spread across major gateway cities across the globe such as London, Mumbai, Delhi, Shanghai, Hong Kong and in Europe,” Johnny Sandelson, CEO , GuestInvest told ET.
This will help companies facing regular hotel bills for visiting staff and clients in major global metros to save on costs, the GuestInvest CEO added.