LAND property is one of the safest investments Real Estate cannot be lost or stolen, nor can it be carried away, purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world - Franklin D. Roosevelt
Residential Lots
Commercial Lots
House and Lots
Condominium units
Proprietary Shares
CONDOTELS are the best form of real estate today because...
*Cash flow is immediate
*No waiting needed for property appreciation
*Very low maintenance- someone else maintains it, manages it, rents it out and reports on its cash flow.
*A condotel is a Condominium operated as a Hotel.
*Investing in one is not speculative, because it gives immediate cash flow, no waiting needed for the property to appreciate as it is income generating from the very beginning.
*Condotels are very low maintenance properties, someone else maintains it, manages it, rents it out, and reports on its cash flow.
The offering we are offering to individuals and their families the opportunity to own a condotel and earn from it at the same time.
The Ritz Condotel operated by Best Western Hotel is a Condotel development that promises security, privacy, and accessibility at Metro Clark Angeles, Pampanga.
THE LOCATION..
Diosdado Macapagal International Airport, Clark Freeport Zone, Angeles City center, and (via the SCTEX) Subic Bay are minutes away.
*Both are near Airports
*Clark Freeport Zone is the next big commercial development
*Infrastructure -set of interconnected structural elements that provide framework supporting an entire structure of development
*Capital Infusion of both Local and Foreign entities
*Road Networks SCTEX, C-5
*Increased security
*Communication facilities
*Business establishments
*Local Governments support on the Masterplan/ Development
Among the country s hotel development hot spots, Clark/Angeles City in Pampanga ranked as #1
The Diosdado Macapagal International Airport advantage..
*The Diosdado Macapagal International Airport (a.k.a, Clark International Airport) is the world s 2nd Gateway to the Philippines
*Most viable and convenient airport from Central Luzon/ Northern Metro Manila
*One of Asia s biggest aviation complexes
*With modern amenities, the next premier international gateway in RP very soon
*The very first Bullet train would be the Manila-Clark development will start within 18 months.
THE RITZ CONDOTEL IN CLARK,ANGELES CITY:
*Showcase of ultimate hotel experience
*Managed and operated by Best Western International
*Within 5-km radius of Clark Freeport Zone
HOTEL GENERAL DESCRIPTION..
*Seven storey Hotel
*Lobby
*All day Dining Restaurant
*Swimming pool
*Deck area for outdoor drinks or dining
*116 rooms: *74 rooms with a 34.2 sq. m floor area
*35 rooms with a 28.8 sq.m floor area
*6 rooms with a 55.88 sq.m floor area
*1 room with a floor area of 42 sq. m
HOTEL OPERATORBest Western International
Best Western International is the largest hotel chain in the world, with more than 4000 hotels and resorts in over 90 countries and territories.
It is among the most recognizable brands in the world, with almost 70 years of pioneering experience in the global hospitality industry.
PRE-REQUISITES OF THE CONDOTEL OPERATIONS
*A pool of Condominium units
*A Leaseback agreement by and between the owners of the pooled condominium units and a Hotel Operator
*Transparent Financial Reporting/ Audit
LEASEBACK AGREEMENT
*A 15 year Leaseback agreement is a document signed by both the Buyer/ Unit and the designated representative of Best Western that stipulates that their condominium unit/s will be part of the pool of condominium units that will be operated by the later as a Hotel
*This document now allows Best Western to offer your condominium unit to the Global Market and pave the way for your property to become Income Generating for the entire duration of your Agreement
*During the 15 year period, unit owners will be given a complimentary 7 room nights annually
RETURN ON EQUITY
Computations/ assumptions
*as a start we are only looking at 50% OCCUPANCY RATE at p4,000/room night.
Management fees at 20% of gross revenues
Cost of Operations at 40%
58 rooms/ nights x 365 21,170 room nights
Rate per night 4,000 php
Gross revenues 84,680,000
Management fees -16,939,000
Revenues after Management fees 67,744,000
Expenses on Hotel operations 33,872,000
Net Revenues before taxes 33,872,000
Total floor are of all the 116 rooms 3,916.08
P8,649.46/ per square meter
*on the 2nd year, we can assume a 62% OCCUPANCY RATE at p4,000/room night.
Management fees at 20% of gross revenues
Cost of Operations at 40%
72 Rooms/ nights x 365 26,280
Gross revenues 105,120,000
Management fees -21,024,000
Revenues after Management fees 84,096,000
Expenses on Hotel operations 42,048,000
Net Revenues before taxes 42,048,000
Total floor are of all the 116 rooms 3,916.08
P10,737.27/ per square meter
*on the 3rd year, we can assume a 62% OCCUPANCY RATE at p4,000/room night.
Management fees at 20% of gross revenues
Cost of Operations at 40%
84 rooms/ night x 365 30,660
Rate per night 4,000
Gross revenues 122,640,000
Management fees -24,528,000
Revenues after Management fees 98,112,000
Expenses on Hotel operations 49,056,000
Net Revenues before taxes 49,056,000
Total floor are of all the 116 rooms 3,916.08
P12,526.81/ per square meter
*on the 4th year, we can assume a 75% OCCUPANCY RATE at p4,000/room night.
Management fees at 20% of gross revenues
Cost of Operations at 40%
87 rooms/ night x 365 31,755
Rate per night 4,000
Gross revenues 127,020,000
Management fees -25,404,000
Revenues after Management fees 101,616,000
Expenses on Hotel operations 50,808,000
Net Revenues before taxes 50,808,000
Total floor are of all the 116 rooms 3,916.08
P12,974.20/ per square meter
To summarize, the returns on a per square meter basis multiplied by the owners unit size will be
P8,649.46 x 28.80 sq. m = P 249,104.45/ 1st yr
P 10,737.27 x -do- = P 309,233.37/2nd yr.
P 12,526.81 x -do- = P 360,722.13/3rd yr.
P 12,974.20 x -do- = P 373,656.96/4th yr.
P 12,974.20 x -do- = P 373,656.96/5th yr.
P 12,974.20 x -do- = P 373,656.96/6th yr.
P 12,974.20 x -do- = P 373,656.96/7th yr.
P 12,974.20 x -do- = P 373,656.96/8th yr.
All the way going to the 15th year
34.20 square meter unit computation
P8,649.46 x 34.20 sq. m = P 295,811.53/ 1st yr
P 10,737.27 x -do- = P 367,214.63/2nd yr.
P 12,526.81 x -do- = P 428,416.90/3rd yr.
P 12,974.20 x -do- = P 443,717.64/4th yr.
P 12,974.20 x -do- = P 443,717.64/5th yr.
P 12,974.20 x -do- = P 443,717. 64/6th yr.
P 12,974.20 x -do- = P 443,717.64/7th yr.
P 12,974.20 x -do- = P 443,717.64/8th yr.
All the way going to the 15th year
The amount of net income returned as a percentage of owners equity. Return on equity measures an operations profitability by revealing how much profit it generates with the money unit owners have invested.
based on our projections, a yield of up to a 16.56% per annum on the 3rd year onwards can be expected
A 13.95% yield on all the unit sizes
28.80 sq. m 13.95%
34.20 sq. m 13.55%
42.00 sq. m 13.95%
55.88 sq. m 13.95%
ROE Interest rate
3years 13.95% 11%
5years 13.95% 14%
THE KEY COMPONENTS
The formula for a profitable condotel venture include the following key components:
*LOCATION
*HOTEL OPERATOR
*TRANSPARENT FINANCIAL REPORTING
*all of which are present in and being offered by Best Western The RITZ
PRICE AND PAYMENT TERMS
P93,000/ square meter
Excluding Furnishing cost (approximately P380k)
Unit owners will be billed to pay for this 6 months before turn over date
28.80 sq. m P 2,678,400.00
34.20 sq. m P 3,180,600.00
42.00 sq. m P 3,906,000.00
55.88 sq. m P 5,196,840.00
Reservation fee 50,000
30%DP within 60 days
70% balance 3yrs: 11% interest
5 yrs: 14%interest
WHAT DOES A CONDO UNIT OWNER GET?
*a CCT (full ownership)
*annual Bank Account Deposit for the next 15 years
*a worry free maintenance of the property.
*Full Ownership
*Usage of the unit/s
*Steady cash flow year after year
* Worry free maintenance and upkeep
for Inquiries Contact us today:
Joebel Roa
CARENET Cooperative
Mobile # :+63.917.913.5075
email: ritzcondotel@gmail.com
