Condo hotels are nowhere close to your typical home. These are lavishly furnished condo suites in some of the most expensive and grand hotels and resorts around. Unlike the normal hotels, these ones are usually massive pieces of property and are managed by some of the biggest players in the business like Hilton and Four Seasons. These hotels have tall structures and rooms with fabulously designed interiors with all the latest technology installed. Not surprisingly, owning a property like this would make you poorer by up to $1 million.
The owners of such condo hotels have their own rental program. So when they are not using the suite, it is put up on rent. But in order to get a decent sum of money in rent, the hotel should have a good brand name and tie-ups. Reservation to such hotels should be centralized and they should have an experienced management team. Whats more, the hotel itself handles the renting process and maintains the suites relieving you of that work.
However before investing in such a property it is important to determine the appreciation in that area. It is a proven fact that condo suites rates are booming at a much faster rate than those of other homes around. Most condo units are booked even before the construction begins. Such homes are directly bought from the developers themselves. The appreciation rates and the poshness of the locality are important criteria which have to be considered before buying a condo hotel suite. Due to massive difference in the demand and supply of such properties, their prices are sky-rocketing by the day.
You will find the best resorts in exotic locations like the Caribbean Islands and Las Vegas. Some European countries like Greece and Spain too have some magnificent resorts at some scenic places. Other cities like Miami, Paris, Rome and Amsterdam also are well renowned for their resorts.
The potential market for such properties, without a doubt, includes everyone around the world who would do with a bit of extra money from their vacation home. Investors and businessmen alike are realizing the financial potential in such a market. Moreover, such properties are safe investments and have a major stock market potential. Also the interest rates for such suites are quite low and affordable.
So if you have the money to invest in such properties, you can have the pleasure of vacationing at these fabulous resorts and also earning from them while you are away.
Interest in the Philippines condominium hotels sector has increased significantly in the past two years following many years of intermittent development and association with other shared ownership vehicles, says Beth Collingz in her recent report: 'Condominium Hotels-The Philippines Latest Hotel Phenomenon'
Beth Collingz, Overseas Marketing Director, Investment Sales for PLC International Marketing the lead marketing partners for Pacific Concord Properties Inc's Lancaster Brand of Condotels in the Philippines explained: A condominium hotel is a hotel operating unit which is sold to individual equity investors, where each owner acquires a room, suite or studio whilst the whole enterprise is managed as a hotel operation under a single brand.
Buyers own their units the same as regular condos. There is no time limit to ownership. All Condos come with freehold title deeds. The Condotel model is similar to the serviced apartment or apart hotel sector and is suitable for an investor who wants to test the water in hotel investment.
We are seeing more and more sophisticated customers coming to the market and a change in demand patterns; the traditional timeshare products seem past their prime. This, plus an increase in investment appetite for the hospitality sector, suggests that the condominium market looks set to grow Collingz continued: Many international hotel brands have also declared that the Philippine hotel landscape is ready for condominium hotel developments, either in conjunction with self-contained hotel operations, as fully self-contained condominium plans or as a part of a mixed-use development plan such as the Lancaster Brand.
Condominium hotels are significantly less developed in the Philippines than in the US, in part owing to a low cost residential focused market as well as the lack of development in the hotel sector since the 1997 Asian Crisis. Alternative hotel ownership are featuring more and more in the hotels sector, with the rise of condominium hotels and a shift in investor strategy, thus creating a new investor profile. At the moment, the Philippine condominium market is being targeted and driven by private retail purchasers, typically reasonably net worth individuals attracted by a city centre or a resort investment foothold although we are now seeing more and more first time property buyers moving into the Condominium Hotel marketplace said Collingz.
Metro Manila and Cebu are particular favorites as an investment destination. There is room for a wider pool of institutional and real estate investors to invest in a portfolio of condominium units or the establishment of an investor-developer partnership.
Collingz continued that a lot of this interest is being driven by the relatively cheap market prices in the Philippines compared to Europe, specially UK Housing prices, and the easy payment options available for our Condo Hotel Developments, but there are other factors, too. Offshore Property Investors, Foreign baby boomers as well as overseas Filipinos, are looking for ways to maximize their return on investments as they approach retirement, and so are purchasing second homes, particularly Condo Hotel Investments where they can use the Condo for vacations and rent it out through our In-House Condotel Management when they are not using the unit thereby gaining rental incomes that on today's purchase prices, give a projected ROI on their investments of some 12-16% depending upon the mode of payment for the unit.
Pacific Concord Properties Inc's Lancaster - The Atrium, Shaw Boulevard, Metro Manila, Philippines is a "Full Service" Condominium Hotel offering Studio, One, Two and Three Bedroom Suites for sale. To be completed and ready for turnover from December 2010, the Lancaster Atrium will provide unit owners with premier residential condo units with option of enrolling their units in the Lancaster Condo Hotel Rental Pool and earn Rental Incomes as Owner Non-Residents when not using their units through Condotel Management. This makes the Lancaster Brand of Condotels, one of the Hottest Investment Opportunities in the Philippines.
Part of the success story for this sector will be the education of a whole new investor base previously accustomed to buy-to-let residential plans or conventional commercial real estate investments, together with the emergence of a secondary market in the Philippines to demonstrate transparency and liquidity said Collingz.
Beth Collingz PLC International Marketing Networks
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Lancastersuites has sinced written about articles on various topics from Real Estate, Investments and Property Investment. Pacific Concord Properties Inc., Manila Head OfficeShaw Boulevard, Mandaluyong City. Metro Manila. PhilippinesPhone: Manila [632] 717 1958Fax: Manila [632] 718 1828Pacific Concord Properties Inc., Cebu OfficeLapu-Lapu City, Mactan. Cebu. PhilippinesPhone:. Lancastersuites's top article generates over 550000 views. to your Favourites.