Investment Possibilities in Condotels
Investment Possibilities in Condotels
The purchasers are capitalists interested in purchasing hotel condos, which offer the convenience of living in a hotel atmosphere. Hotel-condos, which are common in the United States, Europe, and the Middle East, are only recently appearing in the Philippines.
Hotel-condo units are investment and residential apartments, and their owners can use them for up to 30 days a year, unlike simple condominiums, which owners can use anyway they choose. In addition to real estate appreciation, owners can enjoy the hotel's spa, fitness center, and room service. For the remainder of the year, owners typically place their units back in the hotel's rental pool. Owners earn a portion of the rental money as their units are occupied. Alternately, condo owners can make their apartments their permanent homes and treat themselves to a round-the-clock stay at the hotel.
Pacific Concord Properties Inc., one of the first developers to establish a hotel-condo in Metro Manila, has recently revealed intentions to construct a 42-story twin high-rise along Shaw Boulevard, to be known as Lancaster Suites The Atrium.
The Lancaster Atrium is a hotel-condo complex consisting of two towers that share a podium with the previously mentioned and rapidly sold-out Lancaster Suites Tower I.
Condotels began to appear on the market after PCPI launched the Lancaster Suites in 2004. Beth Collingz, marketing director for PLC International Marketing Networks, which has exclusive marketing rights to the Lancaster Suites and Lancaster Suites-The Atrium Hotel Condominiums in Metro Manila, made this statement. There has been an uptick in inquiries from both European individuals and European corporations interested in investing in Philippine real estate.
It's true that many new houses have been built, but there haven't been many new condo hotels built because "in the current hot Philippine real estate market, no one felt the need to try out a product that had never been tested in the country before."
Rising demand for hotels in Metro Manila and a declining value of the dollar abroad have both affected the real estate investment industry. While the general real estate market remains buoyant because of retiring baby boomers and their penchant for vacation and investment properties, the Lancaster project is drawing international clients who are already familiar with the hotel-condo industry. According to Collingz, the 450 hotel-condo units, spa, pool, business center, mini mall, shops, convenience stores, and restaurants that make up the Lancaster Atrium Tower A building will be available to residents. The project's foundation works are complete, and five levels of basement parking have been put in place. It shares a podium with Lancaster Suites Tower I and is only one block from the Ortigas Center, the Shangri-La Mall, the Edsa Plaza Hotel, and the SM Mega Mall.
Collingz stated that most buyers purchase these properties with a small down payment of some 30% to reduce the monthly payments to around $400 for a studio unit or take advantage of a 20% discount for outright cash purchases, despite the fact that easy no prequalification, no down payment, 6-year no interest payment plans are available for the Lancaster Atrium suites.
It is expected that investment in hotels and condominiums in the Philippines, particularly in the country's major cities like Manila and Cebu, will increase. Lancaster Cebu, a development by PCPI, is completely sold out, and condotel operations are set to begin in March.
PCPI has delegated responsibility for the condotel's day-to-day operations, marketing, and asset management to Lancaster Hotels, Land, and Properties, Inc. (LHLPI). LHLPI will lead the management of the condotel and the entire condo complex with the intention of optimizing profits.
The number of international visitors to the Philippines has increased annually by double digits for the previous three years, according to data collected by the country's Department of Tourism. In 2005, Cebu attracted 1.7 million of the total 2.3 million international visitors. To accommodate the five million tourists that are expected by 2010, an additional 40,000 hotel rooms would be required.
We are increasingly sure that our market and financial estimates will be realized thanks to the Lancaster brand of condo developments and the growing demand for hotel rooms.
Post a Comment for "Investment Possibilities in Condotels"