Buy-to-let hotel operator GuestInvest has launched a £55m redevelopment project in London.

A 200-bedroom hotel called The Chiswell Street Hotel will be built on the grade II-listed, former Whitbread brewery site on Chiswell Street.

Although the development will not open until 2008 – following an 18-month redevelopment – the hotel’s rooms are set to go on sale this week, starting at £240,000. Investors are guaranteed a 6 per cent return during the first year.

UK architects Cowie Dalgleish Montgomery will design the interior of the hotel, which will be tailored for City workers and business travellers.

GuestInvest purchased the site from exhibition and conference venue management company EC&O Venues.

GuestInvest was set up in 2004 by developer Johnny Sandelson to promote the sale of hotel rooms to investors, who have personal use of the room for up to 52 nights a year and then earn a share of the profits of letting the room out for the remainder. Details: www.questinvest.com