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Condo Hotels - Guaranteed 15% plus Annual Return on Investment
Home :: Business :: Sales / Service
By: Douglas Choy Email Article
Word Count: 1364 Digg it | Del.icio.us it | Google it | StumbleUpon it

  

The Key is to Buy at Pre-Sale Pricing

Panama real estate is red hot! We have read this from sources like ABC Nightline, The New York Times, The Washington Post, International Living, and the Wall Street Journal, to name just a few briefly. And if it is true that in Dubai you will find most of the Worlds construction cranes then Panama must be the second skyline filled with cranes. There's construction everywhere. However if you try to book a hotel room in Panama City chances are you won't find one. Recently the minister of tourism Ruben Blades published a report stating that there are only 17,000 hotel rooms in Panama, not quite enough for the double digits growth in tourism to the country. He stated that there is a deficit in hotel rooms of more than 20,000 rooms. And although we have a list of New Hotels that are in development in Panama, the demand is still higher than the supply. And we all know what that represents.

Even if we take into account All the New Hotels & rooms currently in development in Panama:

  • 34 Rooms The Holiday Inn City at Knowledge Opening March 27, 2008
  • 102 Rooms The Radisson Colon 2000 Hotel and Casino Opening April 15th, 2008
  • 134 Rooms The Bristol Buenaventura Opening December, 2008
  • 103 Rooms The Radisson Summit Golf And Resort Opening April 2009
  • 80 Rooms The Panama Marriott ext. 376 total Opening late 2009
  • 125 Rooms The LeMeridian Hotel Opening June 2009
  • 128 New Rooms Courtyard by Marriott ext. 248 total Opening fall 2009
  • 800 Rooms Megapolis Condo-Apart-Hotel Opening late 2009 FIRST PHASE
  • 300 Rooms Renaissance Panama Opening late 2010


  • Condo Hotels represent a great Investment option, since demand for hotel rooms in Panama is higher and growing, and the inventory at hand cannot keep up with the demand for rooms. Condo Hotels have become the NEW BOOM in Investment Opportunities. For those of us that like cash generating Investments, and returns of at least 15% annually and higher; investing in a condo hotel in Panama , Now is an excellent opportunity!

    Condo-Hotel's Explained.

    Condo-hotel's are just like traditional hotels, however, each hotel room unit may belong to an individual owner, whereas in traditional hotels, there usually just one owner of the entire building.

    Condo-hotel owners generally sign a contract with a management company to "operate and manage" the hotel facilities and each of the individual hotel rooms. This is done on a profit share basis, with anywhere from 50% to 75% of the rental income going to the individual unit owners. Additionally, some Condo-hotel management companies also pool the remaining annual net operating profits with an additional percentage being distributed at the end of the operating year to the owners. This percentage varies but can be as much as 15%. Additionally, condo-hotel owners get to use their hotel room units for limited number of days per year. Generally between 1 and 2 weeks. So if you plan to vacation in the destination where you own a Condo-hotel unit, this would be an added benefit.

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Douglas M. Choy is an expert in Latin America business and commerce. Mr Choy is the President and CEO of ThinkPanama.com the number one real estate portal in Latin America. He has been mentioned in several business magazines including an article in Latin Trade magazine and quoted as an expert in the region.

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