The first buy-to-let hotel opens its doors to investors today. In a novel approach to buy-to-let, investors are being offered a deal that allows them to participate in the hotel trade.

Under the deal, investors buy a hotel room, are able to stay there for up to 52 nights a year and can earn a return of up to 7% annually by letting members of the public pay to stay in it, according to GuestInvest, the company behind the venture.

The first hotel, Guesthouse West, is situated in London's Notting Hill and the rooms come with an asking price of £235,000 each for a 99-year lease.

The investor gets to stay at the hotel for £10 a night and use all the facilities. Regular guests would pay around £100 per night. Revenue from letting the room is shared equally between the hotel and the room owner.

As well as the staggering price of £235,000 per room, investors will be asked to share in the cost of running the hotel by contributing £500 a year to a sinking fund toward maintenance and renovation costs.

At just 20 rooms, Guesthouse West (formerly the Westbourne Hotel) lives up to its name and is more like a large B&B than a hotel. Guests will be offered lunch and dinner and invited to participate in local activities by calling reception.

The entrepreneur behind the scheme, Johnny Sandelson, of GuestInvest Ltd, plans to open more hotels on a similar basis across Britain and Europe in the next 18 months.