| Interest in the Philippines condominium hotels sector | | | | centre or a resort investment foothold although we |
| has increased significantly in the past two years | | | | are now seeing more and more first time property |
| following many years of intermittent development and | | | | buyers moving into the Condominium Hotel |
| association with other shared ownership vehicles, says | | | | marketplace said Collingz. |
| Beth Collingz in her recent report: 'Condominium | | | | Metro Manila and Cebu are particular favorites as an |
| Hotels-The Philippines Latest Hotel Phenomenon' | | | | investment destination. There is room for a wider pool |
| Beth Collingz, Overseas Marketing Director, Investment | | | | of institutional and real estate investors to invest in a |
| Sales for PLC International Marketing the lead | | | | portfolio of condominium units or the establishment of |
| marketing partners for Pacific Concord Properties Inc's | | | | an investor-developer partnership. |
| Lancaster Brand of Condotels in the Philippines | | | | Collingz continued that a lot of this interest is being |
| explained: A condominium hotel is a hotel operating unit | | | | driven by the relatively cheap market prices in the |
| which is sold to individual equity investors, where each | | | | Philippines compared to Europe, specially UK Housing |
| owner acquires a room, suite or studio whilst the whole | | | | prices, and the easy payment options available for our |
| enterprise is managed as a hotel operation under a | | | | Condo Hotel Developments, but there are other |
| single brand. | | | | factors, too. Offshore Property Investors, Foreign baby |
| Buyers own their units the same as regular condos. | | | | boomers as well as overseas Filipinos, are looking for |
| There is no time limit to ownership. All Condos come | | | | ways to maximize their return on investments as they |
| with freehold title deeds. The Condotel model is similar | | | | approach retirement, and so are purchasing second |
| to the serviced apartment or apart hotel sector and is | | | | homes, particularly Condo Hotel Investments where |
| suitable for an investor who wants to test the water in | | | | they can use the Condo for vacations and rent it out |
| hotel investment. | | | | through our In-House Condotel Management when |
| We are seeing more and more sophisticated | | | | they are not using the unit thereby gaining rental |
| customers coming to the market and a change in | | | | incomes that on today's purchase prices, give a |
| demand patterns; the traditional timeshare products | | | | projected ROI on their investments of some 12-16% |
| seem past their prime. This, plus an increase in | | | | depending upon the mode of payment for the unit. |
| investment appetite for the hospitality sector, suggests | | | | Pacific Concord Properties Inc's Lancaster - The |
| that the condominium market looks set to grow | | | | Atrium, Shaw Boulevard, Metro Manila, Philippines is a |
| Collingz continued: Many international hotel brands have | | | | "Full Service" Condominium Hotel offering Studio, One, |
| also declared that the Philippine hotel landscape is | | | | Two and Three Bedroom Suites for sale. To be |
| ready for condominium hotel developments, either in | | | | completed and ready for turnover from December |
| conjunction with self-contained hotel operations, as fully | | | | 2010, the Lancaster Atrium will provide unit owners |
| self-contained condominium plans or as a part of a | | | | with premier residential condo units with option of |
| mixed-use development plan such as the Lancaster | | | | enrolling their units in the Lancaster Condo Hotel Rental |
| Brand. | | | | Pool and earn Rental Incomes as Owner |
| Condominium hotels are significantly less developed in | | | | Non-Residents when not using their units through |
| the Philippines than in the US, in part owing to a low | | | | Condotel Management. This makes the Lancaster |
| cost residential focused market as well as the lack of | | | | Brand of Condotels, one of the Hottest Investment |
| development in the hotel sector since the 1997 Asian | | | | Opportunities in the Philippines. |
| Crisis. Alternative hotel ownership are featuring more | | | | Part of the success story for this sector will be the |
| and more in the hotels sector, with the rise of | | | | education of a whole new investor base previously |
| condominium hotels and a shift in investor strategy, | | | | accustomed to buy-to-let residential plans or |
| thus creating a new investor profile. At the moment, | | | | conventional commercial real estate investments, |
| the Philippine condominium market is being targeted | | | | together with the emergence of a secondary market |
| and driven by private retail purchasers, typically | | | | in the Philippines to demonstrate transparency and |
| reasonably net worth individuals attracted by a city | | | | liquidity said Collingz. |