Is a Condotel the best investment around?

For those interested in a worry free investment that realises a great financial return then below you can see how condotels are looking like the best investment around. 

Savoy Condotel

In Boracay, two hotels (Savoy and Belmont) are under construction as a part of the Newcoast development on the east coast of the island. Boracay is consistently rated as one of the top holiday destinations in the World, and condotel units on Boracay are selling quickly, reflecting the increasing demands on tourism on the island.

In Cebu, on Mactan, a small island connected to the mainland by 2 bridges Megaworld are constructing ‘Mactan Newtown’, a near to beach ‘live, work and play’ development. The Savoy Hotel is at the heart of the project. Mactan offers some of the best diving, snorkeling, island hopping, jet ski, sailing and cultural activities of any island in the Philippines.

In Manila the business and leisure sectors are the focus of the Kingsford in Manila Bay and Savoy Hotel in Newport. The Kingsford is set in the exciting Bayshore development which will include Casinos, the Kingsford Hotel, shops and all accessed by a new hover rail system to the airport and into Makati.

Now lets look at a real example based on Unit 422 Savoy, Mactan Island

Condotel Case Study: Savoy Mactan
Unit 422, Twin Suite (currently available and could be yours!)

Unit Features:

• Sleeping Area with twin beds, linen and pillows
• Night table with lamp
• Wall-mounted LCD TV
• Coffee table and reading chair
• Mini bar
• Safety deposit box

Unit Finish:

• Ceramic plank flooring
• Carpeted flooring in sleeping area
• Ceramic tiles for Bathroom and toilet

Price for 15 year lease: 5.175M PHP (approx. £74,000)

Now for the worked example of return on investment

Note that the investor cash is released above is based on the overall occupancy of the Hotel (e.g. 70% in this example.)

Annual ROI 8.5%
No hidden extra costs

Now lets assume prices for rooms will increase over time and look at the cash released.

If room rates increase 2% annually over 15 years:

Income over 15 years:                               9.10M PHP (approx. £130,000)

If room rates increase 5% annually over 15 years:

Income over 15 years:                               9.99M PHP (approx. £143,000)

As above with the room rates increasing 5% annually but with an average 80% occupancy over 15 years:

Income over 15 years:                              11.5M PHP (approx. £164,000)

In the last not unreasonable scenario you will earn double the value of the unit over 15years. What better investment could there be!!

What are you waiting for!! Contact us to reserve your unit – they are selling quickly!!