Then the scheme started to unwind, because of financial issues with the company (Hotel Options) that sold the hotel rooms to investors. This company was already in financial trouble, when selling these hotel rooms to the investors. Now the company is under administration as the creditors took legal action against this company.
Obviously, this company did not reveal all these financial problems to the investors when they were marketing the products.
We have no invested in such instruments (like Hotel Rooms, Student Accommodation) for many reasons.
Another important reason - how do you 'own' a hotel room? What rights do you have to that "room"? It is very different from owning a property in the UK, be it a studio apartment, a one or two bedroom apartment or even a house. You get a proper title deed lodged with the UK Land Registry.
Suffice to say, be aware of all the risks before you jump into such investment. When things look too good to be true, they usually are.
Thanks for reading.
