Tapping the desire of the diaspora to have a base in India, a British property developer is planning two business class hotels in Mumbai offering rooms on long-term lease.

GuestInvest is close to finalising a $50 million deal for the two hotels that will offer furnished rooms to the buyers with free stay for up to 50 days in a year and revenue for the remaining period.

"We hope to close the deal for the two hotels by mid-February. After refurbishing we will be able to offer the rooms for sale. Our target is mainly overseas Indians and British nationals keen to buy into India to have a base here," Johnny Sandelson, the company's founder and CEO, told from London.

The concept of owning a hotel room appeals to business travellers and other frequent travellers as it cuts down on the expenses besides being a good investment, he said.

"We have been receiving several enquiries from Indians in London. Our plans to invest in India materialised out of their desire to have a base in India," said Sandelson, who will be visiting India next week.

Buying a hotel room is still a relatively new concept and so far confined to a few countries like the US, Canada and Britain.

The property developer said the company is also luring Indians to buy rooms in a hotel in the heart of London on a lease running over 100 years.

Scheduled for opening in March 2007, The Nest has 171 rooms and its double rooms can be acquired on 999 years lease for 250,000 pounds with a promised six percent return per annum.

To ensure proper upkeep and renovation after eight to nine years, Sandelson said the buyer would have to pay 550 pounds towards 'sinking funds' to ensure no lack of resources for refurbishment.

Out of about 120 rooms sold by GuestInvest, which is backed by the Bank of Scotland Corporate, a few have been taken by people of Indian origin in Britain, he said.

The British property developer is also examining some hotel properties in New Delhi as part of his expansion plan.