YORK investors could buy up hotel rooms to earn cash if a new scheme comes to the city.

Entrepreneur Johnny Sandelson is looking at properties in York for his network of GuestInvest hotels.

The scheme, the first of its kind in the UK, allows investors to buy their own hotel room and earn money by allowing the hotel to let it out to customers.

The firm launched its first hotel in London's Notting Hill in March and now it plans to spend £300 million buying 30 new hotels across the country.

York is one of the firm's preferred locations for a hotel.

People who buy a room in the hotel can stay there for up to 52 nights a year.

Sixteen of the 20 rooms for sale in the London hotel have already been reserved for sale at £235,000 each.

Mr Sandelson said: "GuestInvest is a quilt-edge investment designed to give private individuals a lucrative slice of the hotel property market. They benefit from a pied a terre, a home away from home, but without the hassles of traditional property ownership."

Updated: 09:59 Monday, May 24, 2004