Advice for House to Hotel Conversion.
I have seen a large detached lodging type house in several acres that is for sale and believe there is massive potential for the property to be used as a hotel.
The property is located about a mile from an international airport giving it potential customers. Its is down a quite lane not used for through traffic so is quite and all planes take off and land in the other direction. It has acres of land offering the potential for parking/park & stay and possible future expansion/leisure clubs etc. It is an attractive building with nice grounds with lakes etc offering the potential for weddings especially marquee type weddings.
Its is only 6 beds currently but believe at least 2 more could be added downstairs and it also has a stable block that could be converted for another 4 making it an initial 12 bed.
The property would cost in the region of 900,000 and another £300,000+ to refurb but has anyone any idea as to how this could be financed?
What sort of LTV would be possible?
I am in Construction so could project manage the building works myself.
I could probably raise approx £100k by re-mortgaging or selling existing property but that would leave me well, well short.
Does anyone know how I could involve investors etc without losing any control of the business? Would joint venture be suitable? Would there be investors willing to invest for a fixed return upon completion? I am so confident that this would make money that once complete I believe I would be able to re-mortgage to repay all setup costs and still make a profit.
Would I be able to enquire about conversion prior to purchase?
If anyone has any idea on this subject or any experience of any of the above I would appreciate any advice
Thanks in advance
Ben