The real deal

As we all know, a lot of real estate companies crumbled because of the Asian crash of 1997. At that time, the real estate industry offered great promises: golf course developments, high-rise condos, beautiful villages. But when 1997 came, all the real estate industry was left with were real debts, real lawsuits, and real headaches.

Ten years later, we find the industry booming again and  it’s no longer limited to a few players. It’s also not limited to residential and commercial developments. Now you see a lot of developments that complement our tourism industry, and developments that offer sound investment value — not just speculative value. And that’s great because it’s high time that we promoted the Philippines as a “real” destination worth visiting and investing in.

One new developer I met recently is Richard King, head of J. King & Sons Co., Inc., an aggressive and innovative real estate firm. King was already somewhat involved in real estate before (his company had a chain of inns and small hotels in Cebu). But now, his company is aggressively developing a chain of hotels called the Crown Regency Hotel Group, under which are the following developments: Fuente Towers, Cebu; Crown Regency Suites in Mactan, Cebu; Crown Regency Residences in Guadalupe, Cebu; Crown Regency Residences in Davao; and Crown Regency Hotel & Towers in Fuente Osmena, Cebu. Very soon there will be a Crown Regency Hotel in Makati (September 2007) and — this is the exciting one — a Crown Regency Resort Hotel in West Boracay at Station 3 (June 2008) — an impressive collection of real estate developments indeed, considering that they are a relatively new player in the high-rise development industry. The Crown Regency Prince Condotel, which is being developed by the Fuente Triangle Real Estate Development Inc., will have 300 rooms in central Boracay. Apart from its proximity to the famous white beach, the facility also boasts the biggest pool on the island and a 100-seat function hall and ballroom.

Said King,  “As the economy picks up, we will see a surge in demand for hotel rooms and accommodations. We want to be there to provide the best accommodations and facilities. ” 

King said that the great thing about his developments is that they are not merely places that tourists can go to, they also provide a great investment opportunity different from how other developers have done it before. “Take our Crown Regency Resort Hotel in Boracay, for example,” continued King. “We offer investors a chance to own a piece of this tropical paradise. But knowing that there are questions on actual ownership of land in Boracay, what we came up with is an innovative ownership scheme. Rather than selling units and land, we are offering stock ownership. Basically, when you invest in our condotel, you are not buying the actual land or unit but you are buying a share of stock, which, in turn, is equivalent to one condotel unit. And with that stock ‘ownership,’ you have several options – you can either use it and just pay the administrative and maintenance fees – or you can decide to enroll it in our condotel operations. If you decide to enroll in our condotel system, you get so many privileges: a 45-day stay in your assigned unit, plus a seven-day stay at Club Ultima or any Crown Regency-operated hotels nationwide. Or, if you are traveling abroad, you can opt to ‘trade’ these hotel-stay privileges with other hotels which are part of the Interval International hotels and resorts worldwide, and you can choose from a wide variety of hotels in this international network. For the remaining 320 days in a year that you don’t use your hotel unit, we will rent it out and maintain it. Based on conservative estimates, if there is only, say, a 60-percent occupancy rate per year, you can get your investment back in only five years while enjoying all the hotel perks such as free hotel stays and use of all our world-class facilities.”

Then there is Club Ultima, an innovative lifestyle membership club introduced by King. He says, “Club Ultima is neither a sports club alone nor a country club, but rather it is a fusion of all that. Club Ultima is focused on enriching your quality of life by providing you with a total lifestyle environment.”

One third of the Fuente Towers in Cebu is the towering Club Ultima edifice, which boasts state-of-the-art business and leisure facilities all in one place. I did have a chance to sample Club Ultima in Cebu during a recent visit, and I must say it’s very impressive. It’s not just a hotel, it’s a leisurely dream. There are floors that cater to every need: there’s the restaurant row, the family recreation room, the wellness area, library, everything! Our host, F&B manager Ricky Gonzaga, said, “We really make sure that people who stay here will have a totally unique experience. We’re very passionate about every development in the hotel group.”

These are certainly exciting times for the real estate sector. There’s a lot of so-called reality TV shows airing these days. But to me, what’s really exciting is the ongoing “reality show” – the current boom in the real estate industry. The current Philippine real estate boom is the real deal, folks. Let’s fully support it, and help market it not only to our friends here but also abroad.

In the end, we will all benefit.

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Thanks for your letters, folks! You may e-mail me rodhnepo@yahoo.com. By the way, you can check out the cool sites of the Crown Regency Hotel Group at www.crownregency.com or www.clubultima.com.