• Bank of Scotland backs UK condo pioneer

 

GuestInvest, founded by entrepreneur Johnny Sandelson, is currently developing its second hotel, a £35m property in London’s Bayswater.

The new cash will enable it to buy out the backers of this hotel, property investors Guy Dellal and Vincent Tchenguiz and the private banking wing of Investec. And it will also enable the purchase of a third property, a City office block, which it wants to turn into an aparthotel in the same mould as the first.

The GuestInvest model sees rooms sold-off individually on 999-year leases to investors who can stay in them for up to 52 days a year. There is a guaranteed return of 6% on the investment for the first three years, generated by sharing 50% of the sales from renting out the rooms.

The first hotel, Guesthouse West, opened in April of this year and its 20 rooms have already been sold with some being sold-on again for a modest profit by investors.

The second, known as Nest, is due to open towards the end of next year in London’s Cleveland Square. The 163 rooms are being sold on the same terms and more than half have already gone.

BoS was already a debt financier of GuestInvest but the further backing will enable the company to seek sites overseas. Paris, Milan and Amsterdam are among the initial targets.

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