I cant help but register myself to give my piece of take on this...

There is no need for me to specify the good points of hotel unit investments as the fellow forumer has already spelled them out..

Just want potential investors to know something when it comes to financing (not referring to banks whom tie up during launch, even if they do, they offer lower LTV), and some banks avoid such assets. Do u know why?

For hotel suites, they are normally smallish units or units fitted with layouts n cabinetry fit only for short term stay. And the fact that it is tied to a long tenancy, is also its double edged sword. Cos end up the 2 above factors will determine who the buyers are when this product end up in resale market. That means you can only market to investors and not owner occupiers. Which is why banks disfavour them or offer a lower LTV, cos in the event of default n force sale, the property has a limited base of buyers to support.

The other factor is normally such units won't be given the carpark lots, which makes it less favoured by long term occupiers. And the units might run high into fitting out or rewiring costs when time comes for them to convert back to strata residential units when lease end, if there is a provision at all, in the first place.

I am not saying that all hospitality investments are no good. Instead of hotel suites, investors could consider serviced apartments, which have a lease agreement with operators like Fraser, Ascott etc. Cos such units are built in the first place as meant to be residential units, so there is no problems or issues later as mentioned above. There will always be a premium when developers sell you these assests, so be prudent. As long as it is not overly priced, there are still gains to be made. For example, Lot 163 by Kar Sin, if they have known that the end product Fraser Place is so successful .. (80-90% occupancy with yearly 5% increase in rack rates, and eventually more demand is needed and they converted the office units into extra serviced apartments), I dun think they would have sold them at such low price last time. But there is still a active resale market going on for the resale units at abt RM1.5k +-

As for Ruma, what investors fail to see the catch is thats the returns throughout the 10 years are based on the original purchase price, they should adjust the inflated price for the property over the years, cos that is inflation loss.

Just my piece of opinion.