Hotel-managed condos are condominiums that have the rentals of their rooms managed as a hotel, usually by a well-recognized international hotel brand. Hotels brands are obviously professionals in the rental management business and therefore able to generate higher than average returns for investors. As such, hotel-managed condos are ideal options if you are looking to buying rental property in Thailand.
Hotel-managed condos are perfect investments for repeat visitors to Thailand who love the lifestyle it has to offer and who wish to be part of the growth that they can see with their very own eyes.
At present, a handful of condos and apartments in Phuket are set to be managed by hotel brands upon completion, and that’s a trend likely to continue.
The hotel managed investment offered to buyers tends to feature:
- An initial period of guaranteed returns, usually 6 – 10% for 3 to 15 years.
- A time period in which owners can stay free of charge, usually 14 – 45 days per year.
- Compulsory purchase of a furniture package.
Guaranteed Rental Returns and Beyond
The guaranteed rental returns are offered because hotel brands recognize that it takes a new hotel a couple of years to achieve high occupancy levels and average room rate. Rather than asking investors to suffer in this establishment phase, the hotel brands instead offer an attractive guaranteed return for investors.
After the initial period of guaranteed returns has expired investors are able to join the hotel rental pool where they receive a return based upon occupancy and room rate of their unit.
Buyers also have the option to by-pass the hotel and rent out their units themselves or live permanently as a resident. Around 70% of the units in the developments are rented out as part of the hotel management program but many developments also feature larger units types suitable for full-time living can also be considered as residential property.
Under the hotel managed program owners can stay in their condo units for between 14 and 45 days per year depending on the development. There are usually some blocked out periods such as peak season over Christmas and the New Year period.
Recommended Hotel Managed Condos
This Beachfront Hotel Investment Development in Bangtao is comprised of a total of 196 keys ranging from the signature “Twin Double Beds” Studios up to well-appointed 2 Bedrooms Family Suites. The developer offers two different investment packages, at 2,500,000 and 5,000,000 THB. Both packages will give investors a return of 7% Net per annum for 15 years with a guaranteed buy-back after 15 years +10% increase.