Are You Building a Condotel? Should Guaranteed Returns be Part of the Marketing Strategy?
09 Dec

Are You Building a Condotel? Should Guaranteed Returns be Part of the Marketing Strategy?

Condotel and second home products are usually unable to generate particularly lucrative ROI. This is due to the nature of the product which requires full operational support to be able to compete with hotels and resorts once completed. The typical operating costs of a full service condotel or resort range from 33% to 42% but it can be as high as 65% of the gross revenue depending on the positioning, facilities and services. Read more »

Rental Pool Structure and Unit Sale. Ensuring Quality in the Process
22 Nov

Rental Pool Structure and Unit Sale. Ensuring Quality in the Process

 

Very commonly, Aparthotel, Condotel or Branded Residences offer a “Rental Pool Return”, which, at his simplest form, consist of revenue or profit split between developer and unit owner. We are often involved in reviewing and advising rental pool structures. In the majority of the cases we found that they are not well thought through and this will cause severe problems in future operations as well as disappointments from buyers. What developer should consider before they offer rental pool structure? Read more »