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GuestInvest looking back

Catherine Deshayes

Johnny Sandelson, Founder of buy-to-let hotel room company GuestInvest Group, is reportedly planning to buy back the company which was recently placed in administration...

According to The Times, Sandelson, who set up the company in 2004, is in talks with an equity investor with the view of making a formal offer to administrators Deloitte for the business. However, the company is understood to have already attracted interest from a number of other parties which could pose some stiff competition.

Deloitte is unwilling to comment at this stage about the sale of the company, but joint administrator Nick Edwards said that "It will be assessing the position of the Group in order to determine the best outcome for its creditors."

In 2006 Bank of Scotland Joint Ventures acquired a 19.9 per cent share in GuestInvest in exchange for a debt and equity package worth £200 million.

Edwards told The Times that the rights of investors who bought rooms in GuestInvest on 999-year leases would be preserved under new ownership.

As Guesthouse West in Westbourne Grove, the company's first purchase in 2004, is not part of the GuestInvest Group it will be unaffected by the insolvency.

Source: www.leisureopportunities.co.uk