Five “hot” investments in hotel real estate
Among the proposals on the real estate investment market more and more attention to attract private rooms of hotels and managed apartments with hotel services. The investor buys a single number or several apartment and the management company is responsible for maintenance of the property, and also takes care of filling numbers or finding tenants. In the case of hotels, management companies often act as international hoteliers Mandarin Oriental, Holiday Inn, Condo, etc. Profitable residential property is often controlled by development companies who were involved in its construction. The investor negotiates with the management company about the size and possible fix income from his property, and can also rely on the use of his apartment or hotel room for your stay or vacation in the stipulated time frame.
The company “Tranio” has prepared a review of the five most interesting proposals of this kind.
Eco-complex in the Ile-de-France (France)
Barrier to entry: 215 thousand euros
Yield: 4 %
East of Paris is building eco-villages, which according to the authors is to attract tourists throughout the year. The village will consist of cottages and apartments, surrounded by all the necessary leisure facilities: pools, restaurants, Golf courses, spas, bowling.
The management company is ready to sign a contract and rental management for a period of 10 years and guarantee a fixed return (4 %) regardless of the actual occupancy of rooms.
The initial cost of the 2-room apartment 35 m2 without furniture will be 215 thousand euros without VAT.
Investors also have discounts at nearby Disneyland Paris and the hotels of the Builder of the complex.
Aparthotel in London (United Kingdom)
Entry threshold: 460 thousand euros
Yield: 4 %
On the South Bank of the Thames is a new apart-hotel Park Plaza Westminster Bridge. A 15-storey complex you can buy studios, apartments with one or two bedrooms, and penthouses. In the hotel complex work, Japanese and French restaurants, Spa, fitness club and business center.
The hotel is managed by Park Plaza Hotels Europe, using one of the world’s largest centralised reservation system and the recording of orders. Quarterly investor receives the full information about your room: the occupancy rate, profitability, expenses associated with the service. For 2014 the average rate of return of rooms made up of 6-8 %. Room rates start at approximately 330 thousand pounds.
Apartment house in Lombardy (Italy)
Barrier to entry: from 215 thousand euros
Yield: 4.5 percent
In the North of Italy in Lombardy you can invest in furnished apartments for rent 5 km from lake Garda.
Management company to guarantee a return of 4.5 % with giving the buyer a Bank guarantee.
The cost of apartments varies from 215 thousand to 230 thousand euros with VAT. The investor may enter into with the management company standard for Italy contract management lease for a period of six years.
The buyer has the right to use an apartment or a hotel room for four weeks a year, of which one week may account for the holiday season.
All maintenance costs, repair and maintenance of the apartment takes care of the management company Golf Resort.
Apartment in Austrian Carinthia (Austria)
Entry threshold: 450 thousand Euro
Yield: 4.5 percent
Austrian ski resorts offer high quality services, not inferior to the Swiss counterparts. In Austrian Carinthia, you can invest in luxury apartments with hotel services.
The complex offers all modern entertainment: restaurants and bars, a Spa complex with an area of 2 thousand sq. m, childrens playroom, indoor and outdoor pools.
The residential complex is located near the ski slopes with a length of 70 km.
The investor can agree on a fixed yield of 4.5% without a visit to their apartments, and 4 % if planning to come for up to four weeks per year. Fixed rate possible at the conclusion of the management contract lease for a term of five years.
Holiday apartments in Dubai (UAE)
Barrier to entry: 670 thousand euros
Yield: about 6.5 %
Anantara Residences is more than 400 exclusive apartments, located on the East the Crescent of the artificial island palm Jumeirah in Dubai.
The management company offers two programs of cooperation with investors. The first involves the conclusion of a management agreement for a period of two years with a yield of about 6,5–6,6 %, including taxes and service charges. The possibility of using the apartment for personal purposes appears the investor after two years of the lease. After this period the owner may extend the contract without a guaranteed return. The owner can use the apartment for their own purposes during the four weeks of the year.
The second program offers a “floating” rate of return, dependent on the profitability of the property investor. The management company receives 55 %, and the investor, respectively, 45 % of the income from the property.
Ivan Chepizhko, “Tranio”
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