Beth Collingz, PLC Global Marketing Director of PLC International Marketing Networks, the lead marketing partners for Pacific Concord Properties Inc Lancaster Brand of Condo Hotels in the Philippines says Apart-hotels or Condotels as they are know locally are really growing in popularity among British and European investors. In the last two months alone we have sold a significant number of apart-hotel units both in the UK and Europe.
Apart-hotels are an opportunity for investors to purchase into a new asset class with much higher yields than traditional buy-to-let properties.
The rental opportunity is achieved through a need for hotel accommodation, rather than residential letting markets. There are three key reasons why buyers are keen to invest in Apart-hotels or Condotels in the Philippines" Collingz continues, Firstly, it's a completely hands-off investment: the developer builds the hotel, and the management company runs it. Their job is to operate the hotel, maintain it and ensure maximum room occupancy and, as they receive a percentage of the nightly room rate, they are motivated to do so.
Secondly, because investors income is a percentage of the nightly, weekly or monthly room rate of the rental operations pool of all the units in the development rather than a monthly income from a single rented property, they are not exposed to substantial monthly deficits.
From a financial perspective, the income level compares favorably with traditional buy-to-let. Generally, expected income levels are sizeable 12-16% ROI per annum would not be unusual in a well-selected apart-hotel. If suggested income levels on a development are much below 10%, we would not consider promoting it as it would not represent a good investment opportunity for our clients said Collingz.
In the Philippines this form of investment seems set to outstrip the traditional buy-to-let rental market. At present, Metro Manila and regional towns such as Cebu, lack hotel rooms meaning that occupancy levels in any developments are likely to be high.
Most new investors in the Lancaster Suites Manila are established UK property investors who are looking for a UK product with a higher yield and no operating deficits. However, Apart-hotels are also attracting first time buyers looking to establish themselves on the property ladder whilst making yearly income as well.
Demand for apart-hotels is increasing as investors become more aware and better informed about the opportunities on offer. And whilst finding financing for overseas property has been difficult in the past, PCPI offers all buyers a no prequalification In-House 12 year payment plan with zero down payment, making the entry level open to may first time investors.
Lancaster - The Atrium, located in Shaw Boulevard, Metro Manila, is a "Full Service" Apart-Hotel ["Condotel"] offering Studio, One, Two and Three Bedroom Suites for sale. To be completed and ready for turnover from December 2010, Lancaster will provide unit owners with premier residential condo units with the option of enrolling their units in the Lancaster Rental Pool and earn Rental Incomes as Owner Non-Residents when not using their units. This makes Lancaster Manila, one of the Hottest Investment Opportunities in the Philippines said Collingz.
All units at the Lancaster Suites have kitchen facilities. The standard unit price provides for the suite to be semi-finished but not fully furnished. Included in the current price are the interior finishing’s such as tiled & semi-fitted bathrooms, bedrooms with simulated wood plank flooring, semi-fitted living and dining area with simulated wood plank floorings and lower kitchen cabinets/work tops installed. Walls and ceilings are painted cement finish. A complete optional extra interior fit-out package including unit fittings and fixtures, furniture’s, furnishings, air-conditioning, lighting fixtures and appliances will be available towards the time the units are closer to being completed continued Collingz