Invest in Southern Spanish Tourism,touristic accommodation is proving to be a sensible business
United States of America (Press Release) April 1, 2008 --
Invest in Southern Spanish Tourism
Whilst property markets are very cyclical and can rapidly rise, peak and plateau, a perennial favourite tourist destination can flourish adinfinitum. Take Spain’s Costa del Sol for example. Its property market enjoyed meteoric double digit price rises from the late 90s to early 00s but over the past couple of years this growth has slowed to a more sustainable 4.2% (2007 Q3 over 2006 Q3 – Spanish Ministry of Housing). Close cousin tourism on the other hand is far from slowing and an investment in touristic accommodation is proving to be a sensible business decision.
A popular holiday destination since the 1960s, the Costa del Sol has massive long-term appeal for the whole of affluent northern Europe, led of course by the Brits. The Spanish Airport Authorities, AENA, have released their latest round of figures which show that yet again passenger numbers are up for Málaga International Airport, fourth busiest airport in Spain and gateway to the Costa del Sol. 13.5 million visitors used the airport in 2007, that’s a mammoth 43% up on 2000, 3.9% up on 2006, and we can expect 20 million visitors by 2015. A €900-million airport extension to include a second runway and third terminal is quickly taking shape to respond to this demand.2008 should also see a shift in the make-up of tourists arriving to the Costa del Sol. Delta Airlines has recently announced a non-stop service between New York’s JFK and Málaga starting on 4 June 2008 with three flights a week rising to five flights a week by 8 July, whilst Russian airline Aeroflot has already added a Moscow-Málaga service four times a week by A320 aircraft. Meanwhile the Madrid-Málaga high speed AVE train (Alta Velocidad Española) inaugurated on 23 December 2007 cruises along at speeds of up to 350km and covers the distance between the cities in just two and half hours. This will certainly deliver many more Madrileños to the Costa seeking weekends of sunshine and golf.All of this points to an extremely sunny future for an investment in touristic accommodation, better known as apart- or condo- hotels. Conceived in the USA back in the 1980s, the aparthotel concept has now skipped across the Atlantic and matured to appeal to a new breed of investor. Participants own the freehold of a high quality real estate asset with the added value of high rental returns and can sell on at any time reaping the profit on its appreciated value. However, the real deal-maker is the complete absence of headaches as a branded hotel management company takes them all on.Marbella Royal Suites is a textbook example of a high-return aparthotel. Ten minutes inland from chic Puerto Banús and overlooking the fairways of El Paraíso Golf course, the 120 one and two bedroom apartments alongside three bedroom duplexes are in the hands of leisure resort experts, Kasâmia, who use their unrivalled distribution networks to maximise occupancy rates and therefore returns, as well as maintaining the asset to an immaculate state of repair and cleanliness.Holidaymakers will be enticed by Marbella Royal Suites’ accessibility and five-star facilities from swimming pools and a fitness centre to a Spa and business centre. Owners will be equally enamoured with the all-inclusive fully-furnished pricing, welcome absence of bills or annual charges, 56 days personal usage each year and of course that regular rental income. These properties can also be purchased through SIPP syndication although it’s worth mentioning that personal use is not allowed should you choose this option.Via a seven-year leaseback scheme, owners receive a 50% net share of rental income and this is on a ‘pooled’ basis – so even if their particular unit is unoccupied, the money keeps on coming as it’s not reliant on just the one room. In an established tourist destination such as the Costa del Sol however, occupancy rates are typically high which makes for promising returns.In Marbella Royal Suites’ case there is an additional string to add to its bow and that’s pricing. A fully furnished two bedroom apartment with pool view, at just over 100m2 carries a price-tag of £168,000 with the real value according to the official bank valuation putting it at £235,000. Fully furnished 1 bedroom apartments are available from £99k. The valuation from Grupo Santander Bank, Banesto, comes in at £2683 per square metre, so a limited number of units pre-launch have considerable capital appreciation already built in of around 30%. At launch, once official land registry is complete, this official valuation could even nudge up another 20% higher in the opinion of Banesto.With 100% non status mortgages available and a predicted rental income in excess of £12k per annum net with no ongoing costs, Marbella Royal Suites offers a compelling investment case. With numbers like these it makes sense to put on your business head and invest in tourism.Contact Owner Invest on info@ownerinvest.com, visit http://www.ownerinvest.com, call UK Freephone on 0800 048 0712For further press information or photography please contact Sarah Drane at sarah@purplecakefactory.com or telephone 00 34 607 564 726
Whilst property markets are very cyclical and can rapidly rise, peak and plateau, a perennial favourite tourist destination can flourish adinfinitum. Take Spain’s Costa del Sol for example. Its property market enjoyed meteoric double digit price rises from the late 90s to early 00s but over the past couple of years this growth has slowed to a more sustainable 4.2% (2007 Q3 over 2006 Q3 – Spanish Ministry of Housing). Close cousin tourism on the other hand is far from slowing and an investment in touristic accommodation is proving to be a sensible business decision.
A popular holiday destination since the 1960s, the Costa del Sol has massive long-term appeal for the whole of affluent northern Europe, led of course by the Brits. The Spanish Airport Authorities, AENA, have released their latest round of figures which show that yet again passenger numbers are up for Málaga International Airport, fourth busiest airport in Spain and gateway to the Costa del Sol. 13.5 million visitors used the airport in 2007, that’s a mammoth 43% up on 2000, 3.9% up on 2006, and we can expect 20 million visitors by 2015. A €900-million airport extension to include a second runway and third terminal is quickly taking shape to respond to this demand.2008 should also see a shift in the make-up of tourists arriving to the Costa del Sol. Delta Airlines has recently announced a non-stop service between New York’s JFK and Málaga starting on 4 June 2008 with three flights a week rising to five flights a week by 8 July, whilst Russian airline Aeroflot has already added a Moscow-Málaga service four times a week by A320 aircraft. Meanwhile the Madrid-Málaga high speed AVE train (Alta Velocidad Española) inaugurated on 23 December 2007 cruises along at speeds of up to 350km and covers the distance between the cities in just two and half hours. This will certainly deliver many more Madrileños to the Costa seeking weekends of sunshine and golf.All of this points to an extremely sunny future for an investment in touristic accommodation, better known as apart- or condo- hotels. Conceived in the USA back in the 1980s, the aparthotel concept has now skipped across the Atlantic and matured to appeal to a new breed of investor. Participants own the freehold of a high quality real estate asset with the added value of high rental returns and can sell on at any time reaping the profit on its appreciated value. However, the real deal-maker is the complete absence of headaches as a branded hotel management company takes them all on.Marbella Royal Suites is a textbook example of a high-return aparthotel. Ten minutes inland from chic Puerto Banús and overlooking the fairways of El Paraíso Golf course, the 120 one and two bedroom apartments alongside three bedroom duplexes are in the hands of leisure resort experts, Kasâmia, who use their unrivalled distribution networks to maximise occupancy rates and therefore returns, as well as maintaining the asset to an immaculate state of repair and cleanliness.Holidaymakers will be enticed by Marbella Royal Suites’ accessibility and five-star facilities from swimming pools and a fitness centre to a Spa and business centre. Owners will be equally enamoured with the all-inclusive fully-furnished pricing, welcome absence of bills or annual charges, 56 days personal usage each year and of course that regular rental income. These properties can also be purchased through SIPP syndication although it’s worth mentioning that personal use is not allowed should you choose this option.Via a seven-year leaseback scheme, owners receive a 50% net share of rental income and this is on a ‘pooled’ basis – so even if their particular unit is unoccupied, the money keeps on coming as it’s not reliant on just the one room. In an established tourist destination such as the Costa del Sol however, occupancy rates are typically high which makes for promising returns.In Marbella Royal Suites’ case there is an additional string to add to its bow and that’s pricing. A fully furnished two bedroom apartment with pool view, at just over 100m2 carries a price-tag of £168,000 with the real value according to the official bank valuation putting it at £235,000. Fully furnished 1 bedroom apartments are available from £99k. The valuation from Grupo Santander Bank, Banesto, comes in at £2683 per square metre, so a limited number of units pre-launch have considerable capital appreciation already built in of around 30%. At launch, once official land registry is complete, this official valuation could even nudge up another 20% higher in the opinion of Banesto.With 100% non status mortgages available and a predicted rental income in excess of £12k per annum net with no ongoing costs, Marbella Royal Suites offers a compelling investment case. With numbers like these it makes sense to put on your business head and invest in tourism.Contact Owner Invest on info@ownerinvest.com, visit http://www.ownerinvest.com, call UK Freephone on 0800 048 0712For further press information or photography please contact Sarah Drane at sarah@purplecakefactory.com or telephone 00 34 607 564 726
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