|
|
 |
You are > Home > Advertorial: Buy a Room In A Frankfurt Hotel from EUR 93K with Interest-FREE loan of 50%
|
Thursday, July 10, 2008
Advertorial: Buy a Room In A Frankfurt Hotel from EUR 93K with Interest-FREE loan of 50%
The Condo Investment concept is simple and has proven profitable in the USA where it has been a popular investment option for the past 40 years. Investors have the opportunity to buy a luxury hotel room in a fully operational Hotel with guaranteed rental return.
The room is managed, maintained and marketed and as an investor you receive 50% of the room revenue. You also enjoy capital appreciation and have the added advantage of being able to use the hotel for up to 30 days per year when the purchase is not affiliated with a pension.
Prestige is currently offering an opportunity to own a hotel room in Frankfurt city centre.
The NEST Hotel Frankfurt is currently a fully operational 3 Star Apart-Hotel with an 80% occupancy rate. A full refurbishment programme is underway upgrading the accommodation to 4 Star Standard which will be complete in September 2008 offering significant opportunity to increase average daily room rates. The developer will offer a 10% rental guarantee to cover any downtime during the refurbishment until the end of December 2008.
This is in effect an investment which will 'wash its own face, hands and then hang up the towel after itself' and is an example of the Condo Concept which has been taking the American investment market by storm for the past four decades.
Many large luxury hotel operators such as Starwoods, Hilton and Marriot will now build new hotels only on the agreement that a certain number of rooms are allocated for private purchase. Donald Trump, who has extended his condo hotel projects out of the US and into Dubai, may now have Europe in his sights.
This is where the future of condo hotels lies"
says Ian Chappell, Senior Vice President Of Investment Sales at Jones Lang LaSalle Hotels
And just like any other real estate or hospitality investment, the key to the success is location. Favourite places for condo or hotel developments are resorts and city centres such as Paris, Madrid or Frankfurt, where overseas and business visitors can be relied upon all year round for occupancy.
The Nest Hotel is located in the old apple wine district of Frankfurt, an enviable location which is incredible central. Sachsenhausen is accessible to financial districts but still retains the old world charm of this long surviving Tudor part of town with cobbled streets and many old taverns, making it a popular choice for tourists and business travellers alike.
Frankfurt is an excellent location for a condo investment due to the sheer volume of visitors who go there every year. Among other things, Frankfurt International Airport is one of the busiest in Europe alongside London Heathrow. Frankfurt is also the residence of the European Central Bank, the German Federal Bank, the Frankfurt Stock Exchange and the Frankfurt Trade Fair. Events which are held in Frankfurt include the world's largest motor show, the world's largest book fair, the world's largest consumer goods fair and the world's largest plant engineering fair and many more like Paperworld, Christmas world, Beauty world, Tendence Lifestyle or Light and Building.
In a typical condo arrangement, such as The NEST Hotel Frankfurt, the revenue from the room is split, with 50% going to the investor and 50% to the operator. The hotel keeps the profits from other areas of the hotel, such as restaurants, bars and additional amenities. The investor pays business rates and a service charge out of their share of the income. And with Germany enjoying its fastest pace of growth since 1996 in Q1 of 2008 and a 5 year interest free finance package available, demand is high for investments like this among the savvy Irish investor.
To make it even more attractive, the developer is offering an interest FREE loan of 50% and so confident are they that return on investment will far outweigh the loan repayments, that they are offering some very attractive pay-back options. One option whereby, the buyer invests an initial 50% deposit to purchase. The buyer then makes no further payments until the remaining 50% which is the loan is paid back via the income generated from their asset. As soon as the loan is repaid, the investor starts earning. Therefore if the loan is repaid within 4 years the investor starts to generate income from the fourth year.
This payment structure is designed to ensure that the loan is repaid quickly so that the investor will start earning quickly with no risk regardless of occupancy rates achieved by the hotel. However, the most attractive part of this deal is that the loan being offered is interest free, making this an incredibly attractive investment package.
The NEST Hotel Frankfurt - Investor Benefits Include:
Three Flexible Payment Options Available
Fully Managed by established Budget Boutique Hotel Operator
Currently Operational / 80% Occupancy Rate
Full Four Star refurbishment complete by September 2008
35 Suites with 1, 2 and 3 beds
Prices from EUR93K
ROI anticipated at c.12%**
5 Year "Interest Free" Mortgage Available
Cash Positive in year 1. Debt discharged at end of year 5 ***
Occupancy Rates and Daily Room rates statistics available
50% Deposit Balance From Interest Free Loan
10% Income Guarantee Until December 2008.
The NEST Hotel Frankfurt is an investment which literally allows you to make money while others sleep. For further details contact Prestige, Suite 15, Block D, The Cubes, Beacon South Quarter, Dublin 18. Email frances@theprestigegroup.com. Telephone +353 1 2176300 F: +353 1 2176315
Main News Page
Previous Page
|
|
|
|
