Investing in property is a major attraction to most investors as despite the recent economic downturn property is a sure investment strategy. Sharing the risk with a number of investors has added value.

Why Invest In The Royal Arsenal Hotel

One of the most attractive property investment sectors at the moment is in the hospitality sector for example the royal arsenal hotel. The Royal Arsenal Hotel is situated in Woolwich, South East London. Woolwich is going under considerable amount of regeneration and redevelopment in an already booming location. With the Olympic games nearing this promises to be an exciting and lucrative time for London businesses.

The Woolwich Area

The Royal Arsenal Hotel provides easy accessibility to the centre of London via train services to London Bridge, Cannon Street, Waterloo East and
Charring Cross.

As well as getting prepared for the Olympics, the area around the hotel is also part of the important cross rail station project. This is set for completion around 2017 and will help speed up travel throughout the London, area. When the work is completed the Royal Arsenal Hotel will only be around 50 minutes away from Heathrow and only 8 minutes away from the Isle Of dogs.
The development project is being run by the Berkley group and spans an impressive 76 acres when completed. The development of the area is well underway with the historical elements of the project remaining intact with both Grade I and Grade II buildings being part of the overall scheme. With over 1700 homes completed and a further 3700 planned. This development has already attracted attention with the evening standard awarding it the best regeneration project.

The Royal Arsenal Hotel will be 3* hotel which is to be operated by a worldwide operator. Boasting over 130 rooms (en-suite), 6 floors, lobby, reception, fully stocked restaurant, meeting and conference room facilities, the hotel will be represented by a world known brand, which is instantly recognised for comfort, quality and value for money.

The Investment

The price for a double room at the royal arsenal hotel is currently set at £95,000. This is 21% less than the current appraisal value. Investors can invest with only £40,000 cash with the deposit protected by an insurance policy while the hotel is constructed.

The remaining balance of £55,000 is kept in a non-status package over 20 years with the repayment rate fixed at 2.5% above the bank of England base rate. When the hotel is operating returns have been estimated at around 20% + ROI. All hotel profits will be split between investors with no VAT to pay on the purchase.