GuestInvest has announced that rooms in Nest – its 170-room luxury hotel in Paddington which is set to open in 2007 – will be on sale off-plan from next week.

The company, which owns Guesthouse West in Notting Hill and sells hotel rooms on a buy-to-let scheme, has said rooms will start at £175,000 for a 999-year lease.

Owners can stay in the room for up to 52 nights per year for free and receive a return on their investment by allowing the hotel to let the room out for the rest of the year.

The rooms at Nest have been designed by UK architects Cowie Dalgleish Montgomery and a prototype hotel room will be on display at Paddington station from 30 January to 12 February. In March, the property will also feature in the front windows of Harrods.

Johnny Sandelson, CEO and founder of GuestInvest, said: "Nest offers investors the chance to own a piece of the capital. It's a pied-a-terre without the hassle, maintenance and aggravation that comes with owning a buy-to-let property and provides a secure and healthy income stream.

“Returns rise significantly according to hotel occupancy rates, room rates and nights spent by room owners."

"Our first hotel, Guesthouse West, has a proven success rate with room occupancy rates and rentals resulting in very healthy returns for owners.

“Recent London market forecasts suggest investors in Nest will not be disappointed – in the first eight months of 2005 occupancy rates for London hotels were 79 per cent and are expected to rise, while revenue per available hotel room in the same period has also seen a 2.8 per cent rise."