MANILA, Philippines - Premier developer Sta. Lucia Land taps into the tourism boom as it expands to more condotel development in the country’s key destinations.
Even as Sta. Lucia Land pioneered in condotel development, the company is now responding aggressively to the government’s thrust to promote the Philippines as both a top tourist destination and a business-friendly environment.
“As DOT goes full blast with its “More fun in the Philippines†campaign, we are putting up more condotels to cater to both local and international tourists. By having a mixed hotel and residential development, condotel investors are assured of better returns versus making the whole building solely a condominium or a hotel,’’ said Liezel Tuason-Magpoc, SLI senior vice president for marketing and sales.
Tuason-Magpoc also emphasizes the importance of rentals as a good source of passive income. “Financial gurus advise people to have active and passive incomes. Salaries are passive income while rentals are passive. It is good to invest in something while they are still able to work,’’ Magpoc noted.
Operating condotels since 2008, Sta. Lucia condotel projects have a current 65 percent occupancy rate, and earn an internal rate of return (IRR) of at least eight percent or $570 per month, and annualized growth rate of seven percent on their investment. Rent revenue is paid out to unit owners in quarterly dividends, and investors can expect return of investment on the 9th to 10th year of operation of the condotel.
Hassle-free
SLI condotels’ unique mix of condotel (hotel) and residential units assure investors of better returns versus a purely condotel or hotel building. As opposed to foreign property managers that charge as much as 60 percent fee, SLI opted to form its property management group to make sure investors make money and get good returns.
SLI has pioneered the “30 room nights free†condotel concept in the Philippines, with operational projects in Sotogrande and La Mirada in Mactan, Cebu; and La Breza in Quezon City. Set to rise are Arterra Residences at Discovery Bay in Mactan, and Splendido Taal Tower 2 in Tagaytay City, and in the pipeline are more condotel projects in Davao City, Fairview and Katipunan Ave. in Quezon City, Iloilo City, and Cainta.
Under Sta. Lucia’s unique condotel concept, all unit owners get to vacation free anytime, with 30 complimentary room nights per year, transferrable across all Sta. Lucia hotels and condotels in the Philippines.
All condotel units are placed under the management’s hassle-free rental program initially for 15 years. Experienced hotel managers and staff operate and manage the condotel and take care of maintenance as well as taxes, eliminating the traditional lessor-lessee issues.
Unit owners are assured of steady income through rental revenues within the contract period, with a high return on investment.