HOW IT WORKS
- Do you keep your money in your pocket?
- Are you afraid to lose your bank deposit?
- You don’t believe anymore in banks?
- Looking for a trustable and guaranteed investment?
- Want a permanent and stable monthly profit rate?
Condo-hotel (named also apart-hotel) — the only one, in its own way, unique hotel format, which allows an individual to perform a full-fledged co-investor business.
Today, there are more interesting alternative to bank deposits, namely investment option with minimal risk - buying individual hotel rooms. Those do not require big investment, and profit from such investments is higher than the average interest paid on bank deposits.
Investment in hotel rooms, as a variety of investments in real estate, first appeared in the United States from giving Donald Trump, who proposed a similar scheme in one of his projects. In recent years, the pattern of investment in the hotel rooms began to realize developers in several countries - France, Germany, Austria, Switzerland, and Portugal. Individual projects are being implemented or announced in Greece, Croatia, Slovenia, Albania, Israel, Morocco, Thailand, the Philippines, as well as in Russia.
Buying a hotel room – is a highly profitable and secure placement of funds. Buying a hotel room, the investor is, in fact, become one of the owners of a successful business under the management of the company owning the entire hotel complex. Moreover, the investor becomes the owner of the separately-allocated in the cadastral register of the real estate, which can, if necessary, to be sell or to be used as collateral in bank loan.
The main advantages of investment in hotel rooms - low price threshold, ranging from 29 999 Euros, and a large yield. The yield is higher than that of ordinary apartments, bought for rental, and can be in range from 4% to 16% per annum.
All the experts affirm the low level of risk of the investor and the high liquidity of acquired property (the possibility of quick resale), because such offers in the market, usually scarce. Also, it does not require the personal participation of the investor in the management of business in solving commercial and administrative matters.
Basically, the concept of investing in hotel rooms is similar to investments in residential property with destination for rent. The main difference - no problems with management issues, because their solution is the job of the hotel management company itself. That is - to buy residential property and rent it by yourself, having a number of permanent concerns - such as arriving on time rent payments, pay utility bills on time, concern about the apartment status and others - require constant time and participation. Or you can - buy a hotel room and receive a monthly income higher than the self-rent of the apartment, without worrying about all of the above listed things.
Typically, such a property is sold fully furnished and has a protected territory, and additional objects in common use of all visitors as the hotel restaurant, swimming pool, parking, sauna, place for fitness, etc. Very convenient is the fact that the management company of the hotel provides individual room owners a full room service during their stay at the hotel. Apart Hotel is a convenient place to stay during your holiday or need to live in the country a certain limited period of time (usually no more than 4 weeks in a year).
The condo property (named Condo Hotel or Aparthotel) - a format that combines a hotel and a condominium. In fact, the main feature of the condo hotel is a method of ownership and management. As a rule, the object is a large hotel complex with rich infrastructure: bars, restaurants, spa, sport-and conference rooms and other. This hotel is managed by a single operator, but the hotel rooms do not belong to one large investor, but to certain private owners.
Investors who buy into the ownership the private rooms in the hotel (apartment), devoid of concern for property management. All control takes over the building owner - a professional management company, which has its own marketing department and promotes the hotel as unitary place. The management company usually works with leading international tour operators to provide high occupancy of the hotel and provide the owner with a guaranteed rent. The whole complex is progressing under one brand.
The undoubted advantage of such investments - they are protected from risks. Generally, rooms in hotel complexes are in demand all year round, and the owners do not need to search for tenants. Just as there is no need to do cosmetic repairs or, let’s say, to change the light bulb in the bathroom.
There are at least two options for the distribution of profits from the rental of hotel guest rooms, privately owned: in the first the hotel operator pays the owner a guaranteed return starting with 4% per annum during the term of the contract, no matter what the real profit was obtained, or was the profit obtained at all; or the owner does not receive a guaranteed dividend, but it gets 30% to 35% of rental income (the volume of funds received from the sale of hotel rooms), or from 70% to 75% of net profits derived from the sale of his hotel room.
The advantages for private owners of hotel property are undoubted, because they are getting ready apartments with interiors, complete set of home appliances, furniture, and all this - on a background of 3-4-star service that provides property owners along with the usual hotel guests. Also, the owner of the apartment can accommodate, under certain conditions, in the comfort of his room for a certain period of time, usually 2 to 4 weeks a year.
The main advantages of such investment, the specialists’ developers, considered the low investment risk and guaranteed return on investment.
Actually, investors have the opportunity to place their funds in the first condo-hotel in the Republic of Moldova - the COSMOS hotel.
Hotel COSMOS for investors is:
Safe investment in real estate property, with the possibility, at any time, to sell it, exchange it or use it as pledge
Guaranteed income - up to 16% per annum from the value of purchased room, in Euro
Official registration in the State Cadaster of the full ownership of the purchased property
Free usage of the purchased room by the owner up to 28 days a year (including accommodation and housekeeping)
No cost after purchase - all costs of maintenance, repair, etc. incurs the Management Company
Permanent discount for hotel rooms owners -up to 20% on all services provided by the hotel
The buyer pays once and for life, owns a real estate and receives monthly income in Euro