Invest in your Holiday Villa
Condotels are an excellent solution for people who want to own a Villa in a resort area but don’t want to waste the opportunity of have profits when they aren’t using it.
What is a Condotel?
Condotels go beyond the typical condominium vacation unit.
At their core, they are a unit inside a hotel, typically a Villa, and are operated by luxury companies like the Four Seasons or Le Meridan. The condos are sold to individual investors for the owner’s use throughout the year.
However, when the owner is not using the unit, they have the option of partnering with a rental agency. The rental revenue can help to defray their expenses. Essentially, separately owned condos become part of a hotel’s inventory through a rental program.
Typically, the condotel is desirable in resort locations, where owners can use the home only part-time and rent it out to vacationers when not in use.
These properties are attractive to buyers because they are turn-key and well-managed when in a hotel’s rental pool.
Amenities offered to transient renters might include dining, fitness centers, daily housekeeping, valet parking, and concierge services.
Who Owns the Condotel Room?
The investor who purchased the unit owns the condo. This individual retains all ownership and rights to the condominium. They are allowed to stay in their unit any time they want—as long as it falls within the rental agreement they draw up with the agency.
The rental agency can rent out the unit for the remainder of the time. They take care of all booking arrangements on behalf of the hotel they are aligned with.
Most buyers find the process of renting out the condo unit on their own to be laborious so working with a rental agency makes the process smoother. Using a rental agency means the rental is handled professionally, the unit is well-maintained, and the company takes care of the marketing.
The contract specifies how the revenue is split between the partners and their responsibilities, taxes, repairs, insurance, fees, maintenance, marketing, administrative expenses, etc
The revenue generated by the rental unit is usually split 50/50 between owner and agency, though this is negotiable depending on various factors surrounding the agreement. Typically, the more favorable the split, the more financial responsibility you have toward upkeep.
What Is a Condotel Investment?
When considering an investment in a condotel, you’re pursuing the opportunity to make money over time through the short-term rental of your unit.
The consensus is that they are more of a lifestyle investment. They should be viewed as a vacation home or second home due to the fluctuating real estate and vacation market.
How Much Rental Income Can Be Made?
Developers and rental brands will not always guarantee owners their units will be rented out when not in use. If they do make a guarantee it is for a short period of time such as two years.
However, several factors can increase the likelihood of making rental income off your unit.
Desirable travel destination
Solid amenities package
Good management of the unit
Revenue split agreement
Competition in the area
Purchasing a condotel with a branded company like the Four Seasons rather than an unknown rental company can help to increase occupancy.
Making revenue by renting out the unit is typically considered a bonus to owning a second home.
Condotels are a fast-growing vacation home market, and most units sell out before the construction of the building is even completed. These units tend to start off at their best price and availability in the pre-construction phase and the price increases quickly as they near the sellout point. Unit prices can range anywhere along the financial spectrum depending on location and amenities offered.
Your Condotel in Kuta Lombok, the new Bali
Our resort concept consists in offering to the international and domestic travelers the elements of Lifestyle and Wellness experience. The outstanding surrounding of Lombok Island offers the perfect environment for practicing health activities, stress management program, spa healing therapy but also for celebrating life and enjoying all the fun activities available at THE KLUB.
Investors in search of attractive return and benefits should not miss this opportunity. Approximately 5 years ROI.
Sophisticated, clever, elegance... built for you
Spectacular sea views. Kuta Lombok days are full of wonderful activities as snorkeling & diving, bicycle riding sun, golf, spa, beaches, golf field, surf, best restaurants, relaxation chillout club... and at night the island comes alive with vibrant restaurants and cool party scene with its cosmopolitan lounge bars.
Your villa at THE KLUB is close to the action but far enough away to enjoy your piece of quiet in your paradise
Your Villa at THE KLUB is the perfect getaway for use as you require, either as your private residence or to enjoy your high yields as part of the resort.
THE KLUB isn’t just a place to dip your toes in the water. Dive in for the ultimate in immersive blissful barefoot days and glamorous nights with family-friendly, fun-filled days of watersports, beachcombing, oceanside spa treatments and cool, private cabanas.
Enjoy full food and VIP bottle service in our fabulous cabanas and lounge beds followed by sensual, star-filled nights with live music, cocktails and seafood feasts.
THE KLUB sets a new standard in chilled-out luxury.
Lombok, the new Bali
Why Lombok Mandalika?