GuestInvest, the company offering a hotel buy-to-let scheme, has unveiled plans to open a second property in London, addng a further 200 rooms to its portfolio.

The central London hotel is expected to open in early 2007, with rooms to be sold off plan from spring 2006, with prices starting at £200,000.

The company opened its first hotel in April 2004, and investors in its 20 rooms have seen a 6.5 per cent return on their investment in the first year.

The three investors who sold their rooms on realised growth of 10 per cent.

The latest project is being funded by Bank of Scotland Corporate and Investec Private Bank as well as property investors Vincent Tchenguiz and Guy Dellal.

CEO and founder of GuestInvest, Johnny Sandelson, said: “London is now one of the largest second home markets in the UK and over the past year, 80 per cent of all enquiries have been from investors keen to buy hotel rooms in London.”

Guestinvest aims to make further acquisitions in the capital.