Wednesday, Jun 20, 2007
From one craze to another...
Telegraph: Buy-to-letters check in to room service
"Investors disillusioned with residential property are switching to hotels as the new asset class".. "If you have a spare $600,000 you could buy yourself a room in the Mandarin Oriental - a new 74-storey tower in Chicago. However, you will need a jaw-dropping $21m to buy one of the penthouses in the tower. Again, income is based on the occupancy of the room but BridgePoint, the private equity group in on the deal, guarantees a 15.6 per cent return above the open market resale price." The world must be full of stupid people, would you trust a PE firm's "guarantee"??...
Posted by confused76 @ 04:21 PM (155 views) Add Comment
3 Comments
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1. Benedict said...
Lol
How reassuring, they don't have much data but "three or four investors appear to have had no problem,"
Where's my chequebook . . .
2. royston said...
I have some very fine tulip bulbs for any of you BTL investors looking for a change of asset! Some of my tulip bulbs will cost you little more than a central London 2-bedroom flat. It's the latest thing. I guarantee them personally myself.
3. Rover2000 said...
Hang on a minute. Wasn't a big hotel group flotation cancelled recently because of problems with the hotel/commercial property market. Yes indeed it was:
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/06/11/cmprop11.xml
Seems they may be jumping in too late.