Hotel apartments in Harrogate
Asking price of GBP £185,000
Ref: Investment Hotel Rooms With a 12% rental Guarantee
1 Bedroom(s), 1 Bathroom(s) |
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Key selling points
12% Guaranteed Rental Returns
Anticipated returns of 15% plus
85% Finance at 7%
Luxury 4* Hotel Rooms
Fully furnished
Management in place
Sipp compliant Hotel Deal, 12% guaranteed rental, 85% finance at 7%, 50% of the hotel room rate, Luxurious 4* Rooms, Anticipated yield of 15%+, all year round trade, managment company in place, fully furnished.
KEY FEATURES: THIS IS ONE OF THE BEST DEVELOPMENTS IN THE UK AT PRESENT, WITH 12% MINIMUM RENTAL GUARANTEES FOR ALL UNITS, FULLY FURNISHED UNITS AND A 50% SHARE OF THE NIGHTLY ROOM RATE AND 85% FINANCE AVAILABLE ON ALL UNITS AT ONLY 7%. AFTER THE EXTRAORDINARY RECEPTION OUR INVESTORS GAVE TO THE EXISTING 48 ROOMS IN THE KIMBERLEY HOTEL, WE ARE NOW IN THE EXCITING POSITION OF BEING ABLE TO OFFER 44 NEW BUILD ROOMS, ALL TO AA 4 STAR STANDARDS.
SITUATION
The Kimberley Hotel is perfectly located in Harrogate, the gateway to the Yorkshire Dales and is easily accessible by road, rail and air. Once the playground of the wealthy and now a vibrant cosmopolitan town where tempting tea rooms, beautiful gardens and of course the exotic Turkish Baths belie a magnificent selection of restaurants and bars. Located only metres from the Harrogate International Centre.
THE PROPERTY
With 5 meeting rooms the Kimberley is ideal for the business guest and provides the perfect blend of comfort and contemporary style. Equipped with state-of-the-art facilities the range of meeting rooms is suitable for one day events or residential courses. Our comfortable lounge equipped with wifi Internet access is the perfect place to relax and reflect, and of course your guests are always welcome to sample some of our fine wines and local beers before retiring for the evening.
LETTING ACCOMMODATION
All of the Kimberley’s current 48 bedrooms are equipped with everything your guests would expect to find in a stylish hotel and more. Should your guests wish, upgrades to executive rooms are available in which they will find the added luxury of towelling dressing gowns, fresh coffee and complimentary wine. All of the Kimberley’s bedrooms are unique in style and character and many boast views over the rooftops of Harrogate and the Yorkshire Dales beyond. Each room has everything you would expect to find and more including televisions with pay to view movie channels and high speed broadband access. Comfortable beds, power showers and our award winning “deliciously Yorkshire” breakfast provide the perfect start to the working day.
THE CONCEPT
Investors purchase an individual hotel room on a 999 year lease registered at the land registry, and enter in to a co-terminus agreement with the hotel management company to run their room; the room rental revenue generated is shared equally between the hotel management company and the investor.
THIS DEVELOPMENT IS SPECIAL
We are very excited about these new, high quality premium rooms because Harrogate as a major conference town desperately needs more up market accommodation. This new build consists of 44 en-suite king-size bedrooms, All rooms will be furnished to the highest standards, with internet access and plasma televisions. BRAND NEW FACILITIES These brand new rooms will all be serviced by a new restaurant, two bars and conference facilities of the highest quality.
ADVANTAGES OVER TRADITIONAL BUY-TO-LET
If a traditional buy-to-let investor purchases an apartment or Hotel Room, they have to furnish it, insure it, find a tenant, and usually employ a third party management firm to look after it for them. When it is not rented out they still have all the outgoings, such as council tax, electricity, gas, management and so on. By purchasing a hotel room, the investor has none of these problems. The purchase price includes all high quality fixtures and fittings. There is no need to pay utility bills, council tax or insurance. There is no need to find tenants or a third party management company; everything is done for them. The room is let out on a regular basis and the investor receives his 50% net income, every quarter, with no deductions. It is possible to sell the room at any time, and we will offer it to our waiting list of buyers. Like any property, it can be left in a will and the income and benefits continue to whoever inherits it. The Hotel Room being a commercial investment, qualifies for inclusion in a SIPP (Self Invested Pension Plan).
MANAGEMENT FEES
We have negotiated special fees guaranteed for the first five years, followed by a small increase every five years thereafter. Hotel Rooms £500 per annum.
YIELD
Anticipated yield is expected to be in excess of 15% per annum. With the hotel being situated next door to the international conference centre, room occupancy is very high, with business visitors all year round and strong tourist demand On the original hotel we were happy to offer a guaranteed first year minimum yield of 12%, and we are delighted to offer the same guarantee on this new build.
ROOM INCOME
These rooms will sell out each night at rates from £125 - £195. High levels of occupancy are anticipated year round with business and convention people. A minimum of 12% of the purchase price guaranteed as annual room income will be paid to the room owners on a quarterly basis. It will be paid within 28 days of the end of the quarter. For example the first quarter’s income will be paid on 28th November.
YEILD SUBSIDY
In the unlikely event that any guaranteed yield subsidy for the first year has to be paid, it will be paid after the initial 12 month period.
MANAGEMENT COMPANY
In the unlikely event that the room owners are not happy with the management company, providing more than 75% of owners agree, then the management company can be changed. The current management company has been in place for over 10 years.
FINANCE
We have negotiated a funding option which is available to all purchasers as a Hotel Room buy to let mortgage finance option up to 85% at 7% per year interest only. We suggest you take advantage of this offer so that your contracts can be exchanged. This finance is offered on a semi status basis. This funding is available up to 85% of the purchase price of all the new rooms.
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