I've read this thread and as far as I can see there is not enough information.
If I got this right?
You buy the room - are you charged VAT on the purchase?
If yes register for VAT.
Are there ongoing management costs - Agent for cleaning and bookings etc?
They will charge VAT that can be reclaimed if you register.
How do you get the revenue?
Do you invoice if you are registered you must charge VAT that the management company can reclaim.
Incorporation only works on the tax front if you pay yourselves through dividends, the gains are dependant on how much you earn through PAYE and on how much of the costs you can offset against profit.
Best bet is to get professional advice, then go Ltd company and only tell the accountant what you want him to hear!