Philippines: Ready for Condotel boom!
Marketing Director of investment sales of PLC international marketing, Beth Collingz says that the Philippines is the next country that will benefit largely from Condo-hotel investors. She says that the interest for the Philippines’ condo-hotel sector has increased considerably in the past couple of years.
A condominium-hotel or condotel is a hotel operating unit wherein an investor acquires a room, suite or studio as a regular condo unit. The unit is managed as hotel operations by the brand’s management. Condotels are similar to serviced apartments or apart-hotels (apartel). These models are best for investors who are just starting to get their feet wet in hotel operations.
Collingz’ report says that more and more sophisticated people are joining in the condotel market and the trends and demand patterns are starting to change. There is also an increase in appetite in the hospitality sector which leads to the condominium market’s growth. A number of well known international hotel brands have declared that the Philippines’ market in the hotel industry is ready for condominium hotel developments. Manila and Cebu are the two most popular cities in the Philippines in terms of investment destinations. The Philippines is experiencing this market growth because of the simple fact that interest for investment is driven by considerable cheaper market prices compared to other countries like the UK and the US. Availability of easy paying options is also one of the factors that contribute to the said market growth. Furthermore, foreign investors and baby boomers as well as OFW’s (overseas Filipino workers) who are looking to maximize their ROI as they near their retirement opt to buy second homes, usually condotel investments, for vacations or short visits then have the unit rented-out while they are not using it. This, in return generates additional income for the investor.
This report only means that the real estate industry in the Philippines, especially the Condominium-Hotel sector is on its way up and is gaining momentum for a fast paced growth in the next few years. This is the most opportune timing in investing in a Condotel in the Philippines.