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Buy-to-let group Owner Hotels closes York property

10 July 2009 by
Buy-to-let group Owner Hotels closes York property

Buy-to-let hotel firm Owner Hotels has closed its property in York, Caterersearch has learnt.

The move comes following reports that the company was on the brink of administration.

Owner Hotels' Yorvic hotel is not answering calls and, when contacted by Caterersearch, the head office in Hull said property was not taking any more bookings.

Booking agents are also not taking bookings for the property, including booking.com which has put up a statement saying: "We're sorry, but it is currently not possible to make reservations for this hotel."

Owner Hotels, which operates hotels in Hull and York, uses a model where an investor buys a hotel room on a 999-year leasehold basis with prices ranging from £70,000 to £120,000.

The investor is then entitled to stay in the hotel for up to 52 nights a year free of charge and receive 50% of the net room rate, with a guaranteed annual return of between 8% and 15%.

Owner Hotels first started to experience difficulties in April this year when the firm, which is headed up by Andy Woodcock and Julie Walker, were faced with a staff walkout at its Hull property who claimed they had not been paid.

Several investors have also claimed to have not received money owed to them in recent months.

Owner Hotels was unavailable for comment.

Owner Hotels on the edge of administration >>

Hotel buy-to-let model is under threat as GuestInvest fails >>

Buy-to-let hotel model viable despite recent troubles, says Flaxby boss >>

Booking.com >>

By Gemma Sharkey

E-mail your comments to Gemma Sharkey here.

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