Sectional Title Takes Off in South Africa with Hotel Room Investments Launch

The launch of Hotel Room Investments with opportunities to invest in sectional title villa in the Franschoek Valley, Praia do Cossa in Mozambique and Corail de Plage in Mauritius will allow investors to purchase a two-month long stay at a prime destination whilst simultaneously receiving an annual return on their investments.

Speaking ahead of the launch of Hotel Room Investments at the Maslow Hotel in Sandton on March 12, Mark Taylor, chief executive of the élan Property Group and élan Hospitality Group, said that RSVP’s were coming in fast and the group expected the event to be extremely well attended.

He said local investors now had the chance to become part of one of the fastest growing and most exciting trends to sweep the global hospitality industry.

Buying a sectional title villa in the Franschoek Valley, Praia do Cossa or Corail de Plage is much like buying a villa and renting it out. The difference is that youcan enjoy up to a two-month stay in the resort of your choice. Your unit is then placed in a rental pool and let by the hotel, securing you annual returns on your investment.

He said Hotel Room Investments was looking to annual returns of between seven and 12 percent.

He explained that there are a number of advantages for buyers. “This excellent and profitable alternative to traditional buy-to-let investments allows you to invest in individual hotel villas at an affordable and accessible level. It also allows buyers to enjoy the security of owning their properties.”  

Sectional title hotel ownership also comes with many of the advantages enjoyed by sectional title owners in all the hotels and resorts sold by Hotel Room Investments.  This includes being affiliated to aninternational exchange club organisation which allows the flexibility of exchanging free annual owner time to secure accommodation at other destinations. (This allows for up to 60 days per annum).

However, he said that most investors wanted to take full advantage of their time at the resort of their choice. Many investors, who had minimal but flexible leisure time in a busy working environment, found this arrangement allowed them to vacation at a sophisticated resort with appealing amenities which may have been inaccessible as it would required a large lump sum upfront payment. 

Taylor said that all resorts marketed under the Hotel Room Investments banner were managed and maintained by professional and experienced hotel operators, often under well-known global brands.

Villas are sold fully furnished, with the hotel operator taking responsibility for daily maintenance. The rentals are pooled and hotels operate a reservation system to ensure that rooms are rotated on a strict basis, to even occupancy for equal distribution of income to hotel room investors, whilst managing the level of wear and tear of furniture, fixtures and fittings.

“Hotel Room investments ensures that buyers do not have to deal with the complexities and challenges of letting a unit, non-payment of rent, maintenance and repairs as the hotel is fully managed by an experienced operator. This makes it a truly passive ‘armchair’ investment that allows the buyer to kick back, relax and enjoy the beauty of an assured annual break in a dream destination,” he added. 

Hotel Room Investments is driven by the élan Hospitality Group, a division of the élan Property Group, which has been involved in the development of 19 sectional title hotels since 1998. The group partners with existing properties that have a track record of successfully operating their businesses and developing hotels and resorts further.

“We have a well-established team of experienced hospitality executives who specialise in the hotel investment industry to assist with your purchase, and offer you advice on how to maximise your investment,” Taylor said.

He added that, wherever possible, would-be buyers could visit the resort in which they wanted to invest at discounted rates prior to making an investment. All reservations are subject to availability at each report and are controlled and reserved centrally by Hotel Room Investments.                                                                                           

For more information, visit www.hotelroominvestments.co.za.

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