Frequently Asked Questions
Benefits of owning a hotel-branded residence include:
- Trophy Status: Hotel-branded residences are often the most desirable properties in their respective market areas. They generally represent high-quality architecture, interior design and construction quality in desirable urban or resort locations, all of which carry the seal of approval of the luxury hotel operators. And it does not hurt to be able to say, as Coco Chanel did, "The Ritz is my home."
- Superior Services & Amenities: Hotel-branded resiences typically have access to a variety of hotel services and amenities on demand. This extends from professionally trained and managed staff to housekeeping, room service, concierge and access to luxury spas, fitness centers, restaurants and bars.
- Stronger Resale Values: Given the property's superlative quality and the globalized nature of the luxury property market, hotel-branded residences are positioned to outperform the prices of the non-branded property market. They are also generally quite rare, helpng to protect property values.
Hotel condominiums make great second homes and investments. Think of a hotel condominium as a hotel room, suite, or resort villa that you can buy. As the owner, you can stay there for a period of time during the year - usually up to 60 to 180 days per year - and when not in residence, it will be rented out by the hotel. Revenue from rentals is then split with the owner based on a rental program agreement with the hotel, with generally 40 to 50% of the proceeds paid to the owner. The purchase typically comes with a high-end furniture package, which will need to be maintained with the hotel's room standards for guests, although many hotel condominiums come with a locked "owner's closet" so the owner can keep personal belongings secure when hotel guests are using it. These are also known as "hotel condos" or "condo hotels."
Owners of hotel condominiums enjoy the following key benefits:
- Offset Costs: Given that most vacation homes are vacant for 80 to 90 percent of the time, the hotel condominium rental programs help to offset the operating costs of maintaining the property, and depending on the property and the owner's usage may generate substantial positive cash flow.
- Portfolio Diversification: Hotel condominiums are a way of investing in the hotel real estate market. Unlike regular residential property, their values fluctuate closer to the hotel markets, and thus represent a way of investing without increasing your exposure to residential real estate.
- Hassle Free: For many busy individuals and families not certain about when or how often they will use their second home, hotel condominiums represent an easy, hassle-free way to enjoy a second home or an investment property without having to manage it or find rental tenants on their own.
Supercity Aparthotels is an excellent provider of Serviced Apartments in London. For more information, visit www.SupercityUK.com