Philippine Apart-Hotels Set to Outstrip Treditional Buy-to-Let Market
Below is a MRR and PLR article in category Finance -> subcategory Investing.
Philippine Apart-Hotels Poised to Surpass Traditional Rental Market
Overview
Apart-hotels are emerging as a powerful trend in property investments in the Philippines, according to PLC International Marketing Networks, experts in this expanding market.
Key Highlights
Apart-hotels, also known as condotels, are gaining traction among British and European investors, as noted by Beth Collingz, Global Marketing Director of PLC International Marketing Networks. In just the past two months, a substantial number of units have been sold in the UK and Europe. These investments offer higher yields compared to traditional buy-to-let properties.
Investment Benefits
1. Hands-off Management: Investors enjoy a hassle-free experience as developers build the hotel and management companies handle operations, maintenance, and room occupancy. Their compensation is tied to the nightly room rate, ensuring they are motivated to achieve high occupancy.
2. Shared Income Pool: Instead of relying on a single property's monthly rent, investors earn a share of the nightly, weekly, or monthly room rates from the entire development, reducing exposure to monthly deficits.
3. Attractive Returns: Financially, apart-hotels offer appealing returns, often ranging from 12-16% ROI annually. Investments yielding below 10% are not typically recommended, emphasizing a focus on better opportunities.
Market Potential
In the Philippines, especially in areas like Metro Manila and Cebu, the demand for hotel rooms is substantial, leading to high occupancy rates. Traditional buy-to-let markets are struggling to keep pace with this trend.
Target Investors
Many buyers in the Lancaster Suites Manila are seasoned UK property investors seeking higher yields without operational deficits. First-time buyers are also drawn to these opportunities, aiming to climb the property ladder while earning annual income.
Increasing Demand and Accessibility
The popularity of apart-hotels is growing as investors become more informed about these opportunities. Financing challenges for overseas properties have eased, with PCPI offering a 12-year in-house payment plan with zero down payment, making it accessible to new investors.
Featured Development: Lancaster - The Atrium
Located in Shaw Boulevard, Metro Manila, Lancaster - The Atrium is a "Full Service" Apart-Hotel offering a range of suites, from studios to three-bedroom units, set for completion in December 2010. Owners can opt into the Lancaster Rental Pool to earn rental income as non-residents when not using their units. This makes it a prime investment opportunity in the Philippines.
Units come with kitchen facilities and are semi-finished. Interior features include tiled and semi-fitted bathrooms, simulated wood flooring, and basic kitchen setups. Optional packages for complete furnishing, including appliances and lighting, will be available closer to completion.
For more information, contact:
Beth Collingz
PLC International Marketing Networks
You can find the original non-AI version of this article here: Philippine Apart-Hotels Set to Outstrip Treditional Buy-to-Let Market.
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