Buy-to-let hotel group collapses

THE company behind the UK's first buy-to-let hotel has gone into administration, it emerged yesterday.

GuestInvest, founded in 2003 by businessman Johnny Sandelson, invited investors to buy a room in a luxury hotel, with the option of staying there for up to 52 nights a year at no extra charge, and take the rent from guests who stayed there in the owner's absence. Deloitte was yesterday appointed as administrator to the business. Deloitte said it would assess the position of the group before determining the best outcome for creditors.