New Hotel phenomenon Set to Sweep The Philippines
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Interest in the Philippines condominium hotels sector has grown significantly before two years following many years of intermittent development and association with other shared ownership vehicles, says Beth Collingz in their recent report: ‘Condominium Hotels-The Philippines Latest Hotel Phenomenon’
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Beth Collingz, Overseas Marketing Director, Investment Sales for PLC International Marketing the lead marketing partners for Pacific Concord Properties Inc’s Lancaster Make of Condotels in the Philippines explained: A condominium hotel can be a hotel operating unit that is sold to individual equity investors, where each owner acquires a space, suite or studio whilst the whole enterprise is managed like a hotel operation within single brand.
Buyers own their units similar to 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 it is suitable for a venture capitalist who wants to test the river in hotel investment.
We are seeing more and more sophisticated customers visiting the market and a change in demand patterns; the regular timeshare products seem past their prime. This, with an increase in investment appetite to the hospitality sector, suggests that the condominium market looks set to develop Collingz continued: Many international hotel brands have also declared that the Philippine hotel landscape is ready for condominium hotel developments, in conjunction with self-contained hotel operations, as fully self-contained condominium plans or in a mixed-use development plan for example the Lancaster Brand.
Condominium hotels are a reduced amount of developed in the Philippines compared to the US, partly owing to economical residential focused market plus the lack of increase in the hotel sector because the 1997 Asian Crisis.
Alternative hotel ownership are featuring more and more in the hotels sector, with all the rise of condominium hotels along with a shift in investor strategy, thus developing a new investor profile. At the moment, the Philippine condominium market is being targeted and driven by private retail purchasers, typically reasonably value individuals attracted by the city centre or perhaps a resort investment foothold although were now seeing increasingly 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 certainly room for a wider pool of institutional and property 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 inside the Philippines in comparison with Europe, specially UK Housing prices, and also the easy payment possibilities open for our Condo Hotel Developments, but there are more factors, too. Offshore Property Investors, Foreign forty somethings and beyond as well as overseas Filipinos, are searching for ways to maximize their return on investments while they approach retirement, and so are purchasing second homes, particularly Condo Hotel Investments where they can use the Condo for vacations and let through our In-House Condotel Management if they’re not while using the unit thereby gaining rental incomes that on today’s purchase prices, give a projected ROI on their investments of some 12-16% based on the mode of payment for your unit.
Pacific Concord Properties Inc’s Lancaster – The Atrium, Shaw Boulevard, Metro Manila, Philippines is really 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 give you unit owners with premier residential condo units with use of enrolling their units inside Lancaster Condo Hotel Rental Pool and earn Rental Incomes as Owner Non-Residents you should definitely using their units through Condotel Management. This will make the Lancaster Model of Condotels, one of the Hottest Investment Opportunities in the Philippines.
Part of the success story with this sector would be the education of the whole new investor base previously accustomed to buy-to-let residential plans or conventional real estate investments, with the emergence of a secondary market within the Philippines to demonstrate transparency and liquidity said Collingz.
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