Earn a regular and stable income stream based on a common rental pool arrangement with the resort. All units are placed in the rental pool and 50% of room revenues are equally and proportionately distributed among unit owners. Earn an expected 10% income yield with upside potential over the long run and downside protection. Benefit from the growth in the hospitality sector both in terms of income yields as well as capital value.
Hotel apartment in more mature real estate markets such as UAE, South East Asia, UK and USA have given investors substantial capital value appreciation at the time of exit. With the dynamic and maturing real estate markets in India, a similar phenomenon is now being experienced domestically and it is upto the savvy investor to catch this trend early.
This being an income yielding asset, capital value of the unit in the future will be a function of the income that the asset has been yielding, similar to a pre-leased office commercial or retail unit. For hospitality sector, minimum growth in the average room rate is at par with rate of inflation. In a high inflationary economy like India, minimum expected growth in income yields and therefore capital value for a hotel apartment unit is 8% year on year (in line with rate of inflation).
Avoid paying outgoings such as common area maintenance charges, electricity costs, water bills and other maintenance costs required for the upkeep of the property. Total savings as compared to any other property investment of 2% (per annum on investment amount).
Enjoy complimentary stay at this five star resort for 30 days every year. Option to utilize additional days as desired against rental pool income. Flexibility to break up usage across different periods and seasons or to gift to others as per convenience. Additional flexibility to use multiple rooms (when traveling with friends / family) on single day subject to availability.
Make a smart investment in a hotel apartment unit and get a convenient vacation home in the bargain.