Nov 22 2013, 04:07 PM
QUOTE(DrPitchard @ Nov 22 2013, 02:55 PM)
Don't think they will be interested to acquire back after a certain period. This comes from experience as I am currently in the IT hospitality business. For the projects that I handle, hotel management companies usually sign a long term contract with the building owners to manage the place. Same like what we have here, where Ascott will manage the hotel, on a 5+5 year contract that they sign with the individual unit owners.
Even for existing or refurbished units, the hotel management company won't acquire but rather, sign lease contracts with the owners. There are a few examples of serviced residence within the city centre, or to be specific, near KLCC and also along Jalan Bukit Bintang, where I have projects that are based on such practices.
RM900+psf is indeed on the high side. Can easily back calculate to see the feasibility. Assuming a 6.5% GRR from the price of RM470k. That will yield RM31k per year, or around RM2,600 per month. Based on the current hotel/resort pricing of Shaftsbury Residence, Primera Business Suites, Pullman Putrajaya and Putrajay Mariott, a reasonable price will be RM230/night upon launch. Assuming a decent occupancy rate of 60%, that will be 0.6 x 30 days x RM230 = RM4,200.
The gross profit is RM1,600. If you calculate the housekeeping maintenance, electricity bill, hotel/resort maintenance(sinking fund), staff salary, sales & marketing and others, nett profit will be really low and not much.
Doesn't look like a solid, sustainable plan, to be honest.
GRR Boss, nice to learn from you again...Even for existing or refurbished units, the hotel management company won't acquire but rather, sign lease contracts with the owners. There are a few examples of serviced residence within the city centre, or to be specific, near KLCC and also along Jalan Bukit Bintang, where I have projects that are based on such practices.
RM900+psf is indeed on the high side. Can easily back calculate to see the feasibility. Assuming a 6.5% GRR from the price of RM470k. That will yield RM31k per year, or around RM2,600 per month. Based on the current hotel/resort pricing of Shaftsbury Residence, Primera Business Suites, Pullman Putrajaya and Putrajay Mariott, a reasonable price will be RM230/night upon launch. Assuming a decent occupancy rate of 60%, that will be 0.6 x 30 days x RM230 = RM4,200.
The gross profit is RM1,600. If you calculate the housekeeping maintenance, electricity bill, hotel/resort maintenance(sinking fund), staff salary, sales & marketing and others, nett profit will be really low and not much.
Doesn't look like a solid, sustainable plan, to be honest.
The GRR is 6% and not 6.5% unless earlier buyer got a better offer
There are 3 unit sizes n if exclude the 2 bedroom one and only discuss on the 1 bedroom units, there are
1) 301 sf unit, 1 bed, no living sofa but have kitchenette but no dining table
2) 527 sf unit, 1 bed, living sofa, kitchenette, dining table for 4 person n even a study table
The Rm470k+ is for the 527 sf unit. The Rm230/nite u quoted should be more for the 301 sf unit. And the 527 sf unit should be higher rate and more suited for those who intended to stay longer than 1 or few nites or those with higher budget
How much u reckon will be rate for the 527 sf unit n what is the net profit %?
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