GuestInvest, the buy to let hotel investment group which has gone into administration, is in talks with hotel groups and real estate companies with a view to them buying the business. Johnny Sandleson, the founder of the business, said that he had set up new finance for the business. Some 250 investors had been asked to pay £1m each for 990 year leases on individual rooms in hotels in return for an income from the bookings. In addition investors were able to stay in the rooms at preferential rates. The return on investment was expected to be about 6%.
The hotels were in prime central London locations such as Paddington, Bayswater and one in the City. Nick Edwards the administrator from Deloitte said there was good interest from property and hotel companies.
It is thought that one of the main reasons that the business went under was due to HBOS's problems that lead to a breakdown in the joint venture.
