The global real estate market is as diverse as the tastes of buyers, and everyone on it finds something
for himself. Russians buy real estate abroad for various purposes and to each taste. Some are interested
in stable investments, others are looking for a cozy second home on the seashore, and others are
looking for luxury apartments in the centre of the capitals. Pensioners prefer houses with a kindergarten
in countries with a warm climate, where they can relax in the fresh air. A number of buyers are
interested in resort properties under the management of the hotel.
The resort real estate managed by the hotel is becoming increasingly popular among Russians who are
considering buying property abroad, but are not ready to permanently reside in this property or are
attracted to the developed infrastructure of the hotel operator, guarantees of safety and convenience.
Moreover, this makes it possible to provide additional income. Speaking about buying a resort property
with hotel services for russians, first of all, it is worth remembering that this is an investment in lifestyle
and its quality, and only then – a means to generate income. The main advantage of buying such a
residential property is that it does not require the owner absolutely no worries about maintenance, as
well as financial management related to the management of the property. Even the rental of “hotel”
real estate for rent is fully engaged in by the management company or hotel operator. The owner only
comes to his “second home” when it is convenient for him.
Sea resorts that are based on providing services by hotel operators, can be chosen near beach or marina
or other interesting tourist sites on their territory, or represent a “mixed type” of services for their
guests. Resorts in the mountains are not only ski destinations, but also combined destinations that can
be opened both in winter and all year round. Often, a golf course or other tourist infrastructure is
located nearby or directly in the resort. The most famous active mountain resorts include Andermatt
Swiss Alps in Switzerland, Kempinski das Tirol in Yorchberg, Edelweiss residences in Katchberg.
As a rule, golf resorts represent exclusively the infrastructure for playing golf and everything related to
it, however, there are also “mixed” options. Often, at such resorts, loyal players can purchase high-class
housing in which you can stay, visiting your favorite field, live permanently – or rent out your villa or
apartment. Some of the world's most popular hotel-serviced golf resorts include PGA Catalunya,
Catalonia, Aphrodite Hills, Cyprus, Sheraton Pine Cliffs, and Algarve.
Spa resorts are very popular among connoisseurs of quality relaxation, and accommodation on their
territory can be rented out well. Popular spa resorts with hotel services, such as St. Regis Mardavall in
Mallorca.
Despite the variety of resorts, in recent years there has been an increase in demand for resort property
managed by the hotel. Apartments and villas that are privately owned on the territory of the hotel
provide the owner with access to all the services and services of the resort / hotel in whose territory
they are located. The invoice also includes payments for utilities – water, electricity, sewage, and
insurance, including rental periods by third parties. To rent their “hotel” style housing for rent or not is
an individual decision of each owner. If he wants to earn extra income, he can do it easily.
As for equipment and furniture, for his own use the owner can either purchase his furniture and
appliances, or leave the apartment or villa in the form in which they were purchased. However, in the
case of rental housing, the hotel chain or the owner may require bringing the property into a single
“corporate identity”, which corresponds to all rooms or villas in the complex.
When it comes to owning an object in a hotel serviced condominium, this automatically assumes that
the property is fully serviced by the management company. It will include such expenses as the natural
depreciation of apartments, timely replacement of furniture, repair work, payment of insurance
premiums, etc. The owner does not have to worry about doing these “household” things: this is
especially convenient when he is not in the country.
The main advantage of owning property in the condominium is that the owner has full and free access
to his apartment or villa. In periods when he does not use his housing, he provides it for rent to third
parties. Rental income is distributed between the owner of the apartment, villa and management
company and is used by her to cover the costs associated with the maintenance of this facility,
equipment and the resort as a whole.
The owners of apartments and villas annually pay a share of operating expenses – such as expenses for
the repair and maintenance of apartments and facades, as well as the amount to maintain the so-called
“reserve fund”. It is calculated on the basis of the footage of the apartments and villas owned. These
amounts are deducted by the management company from rental income.
Owners, of course, can make changes to the design of the apartment during their stay, with the
exception of furniture changes. Personal items such as pillows, appliances, etc. during the absence of
the owner are kept in stock.
In the case of owning resort property with hotel services, the owner has constant access to the 24-hour
reception, security, personal concierge, homeowners service team, restaurants and room service,
swimming pools, spas, gyms, etc.
The income from the rental of resort property managed by the hotel depends on how successful the
management company is in attracting the maximum rental income of the resort. The owner of an
apartment or villa in a seaside resort using the “condominium” formula in the long term can expect a
yield of 3.5-4.0% annually after paying all expenses and taxes.
The owner of an apartment or villa in a seaside resort according to the formula of serviced apartments
in the long term can receive an average return of about 7% annually, but at some point, after deducting
the costs of repairing and replacing furniture, the average return will noticeably decrease, and as a
result, usually will be 2.0-2.5%. This is simply due to the fact that rental profitability demonstrates
significantly underestimated optimization compared to apartments in condominiums.
Mountain resorts usually bring lower profitability due to the fact that the tourist seasons are much
shorter (short winter and summer seasons).
