Misconceptions of the Philippine Condominium Hotel Industry
For several years, the Philippine condominium hotel industry has been a viable marketplace for vacation home buyers and property developers. Unfortunately, there are still some misconceptions about the industry that have led the ill-informed to see the condo-hotel business strategy as problematic.
In an effort to clear misconceptions about the industry, Lancaster Hotels, Land & Properties Inc a leading full-service condo hotel management organization with Condotels in Manila and Cebu, explains the five top misconceptions of condo hotels.
1. Condominium Hotels are a flawed business model
Condominium hotels have been and continue to be a stable business concept when implemented correctly. A balance between the goals of the developer and unit owners has to be achieved for the project to succeed. Condotel projects can run into problems when one side gets too greedy or the location does not make sense from the standpoint of it being a viable second home, business or vacation destination. The downfall of a property typically occurs when developer promises are not delivered and/or when purchasers have their own misconceptions about what they are actually buying.
2. Condominium Hotels are an investment opportunity to make a quick profit or at least pay for themselves
While condo-hotels are able to achieve rental revenue to offset certain ownership expenses, they are meant to serve as a second/vacation home first and foremost. This means those interested in purchasing a condotel unit should be in the market for lifestyle enhancement properties, not solely for potential profits. The income acquired from the rental program should primarily be used to offset the overhead costs when the unit is not in use by the owner.
3. All Condominium Hotel units must be enrolled in the developers rental program
Condominium hotels vary across the board; however every property’s on-site rental programs are optional. Owners can choose whether or not to have their unit in the program to be rented as a hotel room while not in use. It is however, to the advantage of the owner to use the on-site rental program to maximize potential rental revenue as well as to take advantage of the numerous other services that often times are offered.
4. Condominium Hotels will work at any location that works for a straight hotel
Not all successful hotels would make for a successful condominium hotel. Since condominium hotels should primarily be viewed as a second home opportunity they primarily work best at locations that would be desirable and will be periodically used by the owner as a vacation or leisure destination.
5. Owners can only use their units on certain days of the year
In many condominium hotel rental programs this restriction does exist but it is always unjustified. Most condo hotel operators are concerned that the condo hotel unit owner will occupy their unit during all or most peak occupancy periods thus taking away potential revenues and management fees. This restriction however is unnecessary since most condo hotel unit owners are also interested in capitalizing on rental revenues during "high season" periods and will reserve their stays accordingly.
Beth Collingz, International Marketing Director of PLC International, lead marketing partners for PCPI's Lancaster Brand of Condotels in the Philippines said the hotel division currently operates the Lancaster Suites Manila and Lancaster Cebu Resort Residences condo rental operations and Lancaster Hotels, Land & Properties Inc will soon add the operations of their latest Condo Hotel, Lancaster – The Atrium Manila.
We are pleased to have reached the point of operations for the Lancaster Brand in Manila and believe this strategic investment will further PCPI's aim to be a niche market leader in Condo Hotel development in the Philippines. The synergies of PCPI's developments will help both PCPI and Lancaster Hotels, Land & Properties Inc grow to new heights. PLC International Marketing Networks are excited to be part of the PCPI Group and this marks a new chapter for the company and the Lancaster brand. With PCPI Group's commitment, resources and support, Lancaster Hotels, Land & Properties will now be able to chart a future that will see the Lancaster Condotel brand reaching its potential. We will be working closely with PCPI to roll out brand initiatives and establish a stronger presence in the Philippine Condo Hotel marketplace added Collingz.
Lancaster Hotels, Land & Properties, together with PCPI, will allocate considerable resources and effort to augment the Lancaster Brand of Condotel portfolio across the Philippines. Foremost in the plans is the establishment of a significant presence in key cities of Metro Manila and Cebu. LHLPI will also be expanding its product range further into the leisure market as well as the extended stay market.
Lancaster Cebu Resort Residences, located a mere 3 minutes from Mactan-Cebu International Airport, provides guests with easy access to all the essentials of urban living. This ideal location will complement the Condotel operation since Lancaster Cebu will function as a condominium hotel – a preferred accommodation choice of businessmen and holiday travelers alike. Guests can check-in to any of the executive studio suites from as low as $45 a night or to any of the two-bedroom loft rooms at $65 a night all inclusive whilst longer term discounted rates for monthly and yearly lease rentals are also available said Collingz.
For Buy-to-Let investors, the operational, Lancaster Cebu provides unit owners with premier residential condo units with option of enrolling their units in the Condotel Rental Pool. Great Investment for Fil-Am's whom visit Manila for Vacations or Business as they can earn Rental Incomes as Owner Non-Residents when not using their units through Condotel Management and reciprocal arrangement with Lancaster Suites Manila.
Units at the Lancaster Cebu are sold fully fitted, furnished and Condotel ready.
Lancaster Suites Manila, is centrally located along Shaw Boulevard, Metro Manila some 200 meters from EDSA-Shaw Boulevard Light Rail Transit Station and the Ortigas Center business district, provides guest access to its own unique Mini Mall feature with prerequisites of the urban dweller. Schools, hospitals, banks, restaurants, shopping malls, and leisure are all found within a few minutes from the Condotel. Clients can either purchase Condotel Suites for investment purposes or lease the units on weekly, monthly or yearly basis. For the soft launch, LHLPI will prepare special promotional room rates from as low as $60 a night all inclusive with breakfast for double occupancy Studio suites aimed at budget and business travelers whilst longer term discounted rates for monthly and yearly lease rentals are also to be made available said Collingz.
A few fully furnished ready occupancy suites are still available for sale at the Lancaster Suites Manila whilst Buy-to-Let investors may purchase furnished Guaranteed Rental Income [GRI] Studio, One, Two & Three Bedroom Suites at Lancaster – The Atrium Manila adopting International Standard Escrow Trust Account “Buyer Safe” Easy Secure Payment Plans… with 3 year interest free payment terms or up to 4 year "In-House" financing available, full condo ownership and minimum monthly maintenance fees, with option of enrolling their units in the Lancaster Hotel Rental Pool.
LHLPI will be even more committed to its guests and Condo Hotel partners. To support the Condo Rental Operations in Manila and Cebu, PLC International, apart from strengthening and expanding sales and marketing offices worldwide, there will be an emphasis to drive greater profitability for its hotel owners. Guests staying at the Lancaster Suites Manila and Lancaster Cebu Condo Hotels and Resorts can look forward to product and service enhancements which will make their stay even more memorable.
For more information and reservations please do not hesitate to contact us:
Beth Collingz- Director
PLC International Marketing Networks
Pacific Concord Properties Inc., Head Office
Shaw Boulevard, Mandaluyong City.
Metro Manila. Philippines
Pacific Concord Properties Inc., Cebu Office
Lapu-Lapu City, Mactan.
Phone: +63 32 340 0721
Cell Phone: 0922 858 7027
Labels: Buy to Let Condotel Investment Philippines, Lancaster - The Atrium Manila Guaranteed Rental Income Condotel Investment, Manila Guaranteed Rental Income Condo, Philippine Real Estate Investments