Philippine Apart-Hotels Set to Outstrip Traditional Buy-to-Let Market
Below is a MRR and PLR article in category Finance -> subcategory Real Estate.
Philippine Apart-Hotels Poised to Surpass Traditional Rental Market
Summary
Apart-hotels are emerging as a significant trend in property investments across the Philippines, according to experts at PLC International Marketing Networks. This innovative approach to real estate is becoming increasingly attractive to both British and European investors.Key Points
Rising Popularity of Apart-Hotels
Beth Collingz, Marketing Director at PLC International Marketing Networks, notes the growing interest in apart-hotels, commonly referred to as condotels in the Philippines. This surge is particularly notable among British and European investors, with a marked increase in sales over recent months.Benefits of Apart-Hotel Investments
Investors see apart-hotels as a promising new asset class, offering potentially higher yields compared to traditional buy-to-let properties. The investment is largely driven by a demand for hotel accommodation rather than conventional residential lettings.Reasons for Investment
There are several compelling reasons to consider apart-hotels:1. Hands-Off Management: The developer constructs the hotel, while a management company handles its operations, maintenance, and occupancy, driven by a share of nightly room rates.
2. Stable Income: Investors benefit from a pooled rental income, which provides more stability than relying on a single tenant. Expected returns are robust, typically ranging from 12-16% annually. Investments yielding below 10% are generally not recommended.
Growth Potential in the Philippines
The apart-hotel market in the Philippines is set to outpace traditional rentals, especially in areas like Metro Manila and Cebu, where hotel rooms are in short supply, suggesting high occupancy levels for new developments.Attractive to Various Investors
Experienced UK property investors are drawn to apart-hotels for their higher yields and lack of operating deficits. First-time buyers are also interested, seeing them as entry points into the property market with the added benefit of generating annual income.Accessibility and Financing
As awareness grows, demand for apart-hotels increases. Historically, financing overseas property has been challenging, but Pacific Concord Properties Inc. (PCPI) simplifies the process with a 12-year in-house payment plan requiring no down payment, making it accessible for first-time investors.Lancaster Suites Manila
The Lancaster Suites in Manila, a "Full Service" apart-hotel, offers a range of studio to three-bedroom suites. Available from December 2010, it allows unit owners to join a rental pool, earning income when not using their units. This feature positions Lancaster as an attractive investment opportunity.Each unit includes kitchen facilities and comes semi-finished, with options for full interior fit-outs as completion approaches. This flexibility adds further appeal to prospective investors looking for modern and versatile property options.
In summary, apart-hotels present a lucrative and manageable investment opportunity in the Philippines' real estate market, appealing to both seasoned investors and newcomers alike.
You can find the original non-AI version of this article here: Philippine Apart-Hotels Set to Outstrip Traditional Buy-to-Let Market.
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