CONDOTELS CONDO-HOTELS - New Hotel Phenomenon Set to Sweep the Philippines
Below is a MRR and PLR article in category Finance -> subcategory Investing.
Condotels: The New Hotel Phenomenon Set to Transform the Philippines
Summary
The rise of condominium hotels is making waves in the Philippine hotel investment landscape. Already established in the US and Europe, condotels are poised to become a significant part of the country's hospitality scene.
Understanding Condotels
Interest in the Philippine condotel sector has surged over the past two years, with significant developments. Beth Collingz, Overseas Marketing Director for PLC International Marketing and a leading figure in promoting the Lancaster Brand of Condotels by Pacific Concord Properties Inc, offers insights:
"A condominium hotel operates as a regular hotel but is sold to individual investors. Each owner acquires a unit, such as a room or suite, which is then managed under a single hotel brand."
Owners have freehold titles and can retain their units indefinitely. This model, similar to serviced apartments, appeals to investors looking to explore hotel investments.
Market Evolution
Sophisticated customers and shifting demand patterns are driving significant changes. Traditional timeshare products are losing their appeal, while interest in the hospitality sector grows. Collingz notes that many international hotel brands are exploring condominium hotel developments in the Philippines, whether standalone or part of mixed-use projects like the Lancaster Brand.
Previously underdeveloped in the Philippines compared to the US, the condotel market is diverging from a low-cost residential focus. Investors are seeking alternatives and redefining strategies, attracting a new investor profile. Currently, private retail buyers, typically with substantial net worth, are entering the market for urban and resort investments. There's also a growing interest among first-time property investors.
Investment Hotspots
Metro Manila and Cebu are particularly appealing investment destinations. There's potential for broader participation from institutional and real estate investors through condominium portfolios or investor-developer partnerships.
Collingz highlights the appeal of the affordable Philippine market, especially compared to Europe, and the flexible payment options available for Condo Hotel Developments. Offshore property investors, foreign retirees, and overseas Filipinos are seeking ways to maximize their investment returns, often purchasing second homes as condotels. These units can be rented out when not in use, offering rental incomes and projected ROI of 12-16%, depending on purchase terms.
The Lancaster Atrium
Pacific Concord Properties Inc's Lancaster - The Atrium, located on Shaw Boulevard, Metro Manila, offers fully serviced condominium hotel suites. Expected to complete by December 2010, it provides premier residential units with the option to join the Lancaster Condo Hotel Rental Pool, allowing owners to earn rental income when not using their units. The Lancaster Brand of Condotels is touted as one of the hottest investment opportunities in the Philippines.
Future Prospects
A crucial factor in this sector's success will be educating new investors accustomed to traditional buy-to-let plans or commercial real estate investments. A developing secondary market in the Philippines will also help demonstrate transparency and liquidity.
For more insights, contact:
Beth Collingz
PLC International Marketing Networks
You can find the original non-AI version of this article here: CONDOTELS CONDO-HOTELS - New Hotel Phenomenon Set to Sweep the Philippines.
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.