Estate Living Magazine Investment - Issue 34 October 2018 - Page 20

Capital On Bath Invest in a furnished hotel apartment Ever thought of investing in a swanky hotel apartment? Sectional title ownership of hotel rooms or suites is on the upswing, due to rising demand for flexible corporate accommodation. ‘The decline in the rand exchange rate over the past few years has boosted South Africa’s popularity as an international venue for conferences, events and business meetings,’ says the Rawson Property Group’s managing director Tony Clarke. ‘In addition, there is a global trend among mobile executives and professionals who work on contract or relatively short-term assignments to opt for hotel suites rather than self-catering apartments wherever they are working. It’s more convenient to have everything handy, from meals and catering when they need it to business services and meeting rooms on site,’ he says. Several well-known properties have successfully been opened up to private ownership in this way, including the Pepper Club and the Cape Royale developments in Cape Town, the Krystal Beach Hotel in Gordon’s Bay, the Riverside Hotel in Durban, Zimbali’s Fairmont Resort, the Protea Hotel Parktonian in Johannesburg, and the Protea Hotel King George in George. The typical deal is that you purchase a unit and lease it back to the hotel into its rental pool. There’s no agency fee, and you are guaranteed a rental income, whether the unit is occupied or not. The only condition is that you are usually required to buy the hotel’s furniture package so that it can be furnished to its specs, but this is usually at a good price, due to the development’s bulk buying and connections in the trade. 18 | www.estate-living.co.za The latest kid on the block is The Capital Hotel Group, which has four of its apartment hotels available to investors – The Capital On The Park in Sandton, The Capital On Bath in Rosebank, The Capital Pearls uMlanga Durban and The Capital Mirage in Cape Town. ‘At The Capital, the rental contracts with us are for three years, with the option to renew for up to nine years, and we give you a guaranteed income for the same period, regardless of whether the apartment is used or not. We also take care of all the maintenance and upkeep of your apartment, so it’s fuss free,’ says The Capital Hotel Group MD Marc Wachsberger. You aren’t tied to this option, however. You can also live in your apartment, enjoying the hotel lifestyle, or rent it out on your own. Located in central business districts, these three properties already have a robust rental market. For investors who don’t have time for maintenance upkeep, like business