VICTORIA JUNCTION From: R 1,200,000 Size: 67 M² Bedrooms: 1 Bathrooms: 1 Loft apartment Rental Yield +/- 9%	RADISSON HOTEL From: R 4,500,000 Size: 127 M² Bedrooms: 2 Bathrooms: 2 Loft apartment Rental Yield +/- 7%	PRESIDENT HOTEL From: R 500,000 Size: 35 M² Bedrooms: 1 Bathrooms: 1 Loft apartment Rental Yield +/- 8%

SECTIONAL TITLE HOTEL OWNERSHIP

An opportunity is afforded to the investor to participate in Cape Town’s booming tourism industry. Buying a Sectional Title Hotel is like buying into a share of a successful hotel operation. All the benefits of a successful top hotel operation are enjoyed by the owner, while the arduous duty of running such a hotel rests with a professional management company.
Among the many other benefits, this product entitles the purchaser to the conditional use of their own fully serviced hotel room for up to 30 days a year (returns reduce when your suite is removed from the rental pool, as the return is based on 365 days availability.) When the purchaser or the guest is not in residence, the unit will be let out as a normal hotel room by the Management.
Refurbishment and maintenance costs and replacements of broken or damaged equipment is taken care of by the hotel operator and these costs are allocated to running expenses and deducted form the total revenue before the profit is shared amongst owners. In most cases, the management companies set up an “Asset Reserve Fund” which is effectively a prevision for future renovation and replacement, thus removing the potential burden on the Body Corporate to raise these funds through levies.

An ideal product for corporate business for a joint accommodation and investment product and ideal for the investor who can achieve up to 10% income yield if no personal occupation is taken.

INVESTMENT PLAN:

• The purchase price includes all interior fixtures, fittings and furnishings.
• All suites together with all furniture, fittings and fixtures are maintained and replaced as need be by the hotel operator
• All hotel suites income and expenses are pooled and the net proceeds are shared amongst the owners on a pro-rata ownership basis based on the square meter age of your unit.
• Service charges/Levies are deducted from gross income.
• Rental returns are paid out monthly together with relevant information and updates from the operator.
• A long term secure capital investment, with the added benefit of a monthly income stream
• Depending on ownership structures VAT or Transfer can be claimed back from Revenue