How to choose resort property with hotel management?

The diversity of the global housing rental and purchase market

The global rental and housing market is a diverse ecosystem that caters to a wide range of preferences among buyers. Here, everyone can find something that meets their unique needs.

Factors for choosing foreignreal estate

The choice of foreignreal estate depends on many factors, including:

• Client personal preferences
• Financial opportunities
• Taste preferences

For some people, finding reliable investment opportunities is of utmost importance, while others aspire to comfortable housing by the beach. Additionally, there is a category of buyers dreaming of acquiring luxurious apartments in the heart of dynamic metropolises.

Preferences of different categories of buyers

For example, elderly people often show interest in buying a country house with a small plot in warm countries where they can enjoy nature. Young people and professionals at the peak of their careers mostly consider investing in real estate that won't require significant maintenance efforts. Resort properties managed by hotels could be an ideal solution for them.

Definition of resort real estate with hotel management

Resort properties with hotel management refer to living spaces such as apartments, chalets, or villas located in vacation areas, offering standard hotel services.

The history of the development of this segment

The beginning of the history of this sector can be traced back to the opening of the Sherry Netherland hotel on Fifth Avenue in New York City in the 1920s. This hotel became the foundation for the concept of residential real estate with hotel services.

For over thirty years, this type of housing has attracted interest in the United States. One of the first brands to start developing the idea of resort real estate with hotel management was the chainFour Seasons, which began its operations in Boston. This success served as a springboard for their further advancement in the Asian markets. After that, a network emerged.Ritz Carltonquickly gained popularity in the United States.

The development of resort real estate in Europe

In Europe, resort real estate with hotel services began to develop significantly later—about 15 years ago. Among the most successful hotel chains, we can highlight:

• Starwood Group
• Falkensteiner in Austria and Croatia
• Radisson Bluwith their project Sun Gardens Dubrovnik

More accessible networks, such asPierre & VacancesandLandal Green ParksThey also actively contribute to the development of this sector.

Tips for Investors

Investors should keep in mind that well-known hotel brands often simply lend their name to a project, while the actual management is carried out by a few hotels located in the area. Generally, such properties are owned by private individuals as well as various investment companies and funds.

Regions for purchasing resort real estate

The main regions where it is possible to purchase resort real estate with hotel management include almost all European countries where this type of property is available on the market. This opens up great opportunities for investors who wish to earn from rentals as well as acquire their own place for relaxation and rejuvenation.

Choosing resort real estate

The choice of resort real estate largely depends on its location in relation to the buyers' place of residence. People prefer to purchase properties that are easily accessible in terms of transportation links. This implies the availability of both regular and charter flights, convenient transfers, as well as a well-developed infrastructure in the tourist services network of the region.

For example, residents of France typically choose neighboring countries like Spain for their vacations instead of stopping in Croatia. However, there are exceptions: real estate experts observe that citizens of the Netherlands and the UK do not have strict preferences, allowing them to consider various countries with good transportation networks. The same is true for Russians, who are increasingly paying attention to resorts located on the Adriatic coast, such as Italy, Croatia, and Montenegro, which can be explained by their good transport accessibility.

Advantages of resort real estate with hotel services

When it comes to acquiring resort property with hotel services, it's important to understand that this is not just an investment in comfort and lifestyle, but also an opportunity to generate stable income. Considering these factors, impressive results can be achieved.

• Property management:One of the main advantages of such housing is that owners do not need to worry about its maintenance or the financial management associated with the operation of the property.
• Care about the rental:All questions regarding property rental are handled by the management company or the hotel operator.
• Ease of use:Thus, the property owner can use their "second home" at any time that is convenient for them.

For example, the owner of an alpine chalet can enjoy the winter during the peak ski season or come in the summer for mountain biking. This allows one to essentially "acquire a lifestyle," which is one of the privileges of modern civilization, especially for those who lead an active life and value every minute.

Long-term investments in resort real estate

Moreover, large residential projects with hotel services are becoming a reliable tool for long-term investment. Although the level of return may not seem very high, such real estate serves as a protection against inflation risks over a long period of time.

Experts recommend paying attention to such resort properties for those who care about their future or wish to ensure a comfortable retirement for their parents. This may prove to be a more sensible strategy than relying solely on government pension payments.

Advantages of foreignreal estate

In addition to a stable income, such foreignreal estate can always be used as a place to return to and enjoy the familiar atmosphere and lifestyle. This purchase is not just a transaction, but a true investment in one's own well-being and comfort. Everyone can find their own benefit and confidence in the future in this.

A variety of resort properties with hotel services

Resorts by the sea that offer hotel services can take various forms. They may focus entirely on beaches or provide additional amenities, such as a marina or other attractions for tourists.

There are also "combined" options that include various types of services to meet customer needs. Among such resorts, it is worth noting:

• St. Regis Mardavall in Mallorca
• Sheraton Pine Cliffs in the Algarve
• Porto Montenegro in Tivat
• Sani Beach Resort in Halkidiki
• Elounda Beach in Crete
• Punta Skala and Premium Living by Falkensteiner in Zadar
• Sun Gardens Dubrovnik, part of the "Leading Hotels of the World" network in Croatia.

Among the interesting developing seaside resorts that are expected to offer a full range of hotel services, we can mention:

• Orascom Lustica Bay in Tivat
• Porto Novi in Herceg Novi, Montenegro

Mountain resorts

Mountain resorts attract visitors not only in winter for skiing but also in summer if they offer additional recreational opportunities. Such resorts often have golf courses or other tourist attractions, making them multifunctional for various types of leisure activities.

Among the well-known active ski resorts are:

• Andermatt Swiss Alps in Switzerland
• Kempinski Das Tirol in Jochberg
• Edelweiss Residences in Kachberg

Golf resorts

Golf resorts are focused on providing all the necessary conditions for playing golf and related services. However, some of them also offer Olympic infrastructure and accommodations where dedicated players can either stay temporarily or rent their villas or apartments.

Among the most famous golf resorts with hotel services, the following can be highlighted:

• PGA Catalunya in Catalonia
• Aphrodite Hills in Cyprus
• Sheraton Pine Cliffs in the Algarve

Spa resorts

Spa resorts are quite similar to golf resorts, except that instead of a golf course, they offer their guests luxurious spa facilities. These places are becoming increasingly popular among those seeking quality and relaxing leisure, which makes real estate in such resorts attractive for rental.

A striking example of a successful spa resort with hotel service isSt. Regis Mardavallin Mallorca.

Urban resorts

Urban resorts are aimed at people leading an active business life, such as entrepreneurs, business professionals, and students studying in major international centers. An example could beKempinski Palais Hansenin Vienna.

Experts in real estate and tourism emphasize the growing popularity of urban resorts, which many believe could attract new buyers in the future, opening up new horizons for investment opportunities.

Resort areas and their significance

In our modern world, where high-end resorts are rapidly developing, it is worth noting that the main trend is the resort areas located along the coasts. Experts strongly recommend paying attention to such places in the near future. Despite the fact that new residential complexes by the water continue to emerge, the number of plots on the coast remains limited, which could lead to a shortage of quality properties in the future.

Types of property at resorts

Speaking about the types of real estate in such resorts, one can distinguish between apartments and villas that are privately owned by the owners within hotels.

Responsibilities of property owners

Owners of apartments and houses are obligated to cover their share of operating expenses annually, which include costs for maintenance and repairs of both the residential units and their exteriors. Additionally, a special amount is allocated for maintaining what is known as a "reserve fund." This amount is calculated based on the area of the property owned by the owners.

The management organization withholds these amounts from the rental income of the owners. It is important to note that while owners can upgrade the interiors of their apartments, changes related to furniture are not allowed.

Personal belongings, such as textiles, household appliances, and other items, are placed in storage during the owner's absence. This responsibility falls to the staff of a specialized team, who provide various services to the owners.

Advantages of resort real estate

One of the striking features of the process of acquiring hotel-managed real estate is the very process of purchasing. Typically, there is the option to simply buy a house or an apartment, which can create the impression that you are left alone with the new property. This, in turn, has its pros and cons once the deal is finalized.

But when it comes to purchasing resort real estate with hotel services, owners are guaranteed ongoing support in managing their property, which implies the development of relationships with the seller. This also leads to the involvement of third parties, such as a management company or hotel operator, who are responsible for servicing and maintaining the property in proper condition.

Available services

Owners can expect benefits such as:

• Stable rental income
• High-quality service at the initial and subsequent stages

With resort properties that offer comprehensive hotel services, owners gain access to a wide range of services at any time of the day or night:

• Reception work
• Security
• Personal concierge
• The team responsible for servicing owners
• Restaurants
• Room service
• Pools
• Spa and fitness centers

Participants in property management

The management of serviced properties involves the participation of three key players:

• Investor or financial institution
• Management company or hotel operator
• Owners of apartments and villas

An investor can be an individual, as well as funds, public companies, banks, or financial institutions, or a combination of these. The management company can perform asset management functions or act as a real estate operator, providing comprehensive management of ongoing processes.

Conclusion

Thus, owning resort property under hotel management opens up many opportunities for owners. The streamlined operations and support from the management company provide confidence that significant investments will be under reliable control.

Owners can enjoy a high level of service thanks to a full range of amenities, including professional concierge service, personal item management, and comfortable relaxation within the complex. This also helps attract tourists, ensuring stable income and return on investment.

Of course, the relationships between all participants in the process of exchanging real estate, services, and income are an important aspect that must be carefully considered to make property management as effective and profitable as possible.

Rental income from resort property

Rental income from resort properties managed by a hotel company largely depends on the efficiency of the management structure and its ability to maximize financial returns for the owners. Owners of apartments or villas in tourist areas participating in a condominium program can expect regular income within3.5–4%per year, taking into account all necessary expenses and tax deductions.

At the same time, property owners operating on the serviced apartment model can expect a higher profit of around7%annual. However, due to significant expenses for updating interiors and ongoing maintenance, the actual yield may drop to2-2.5%This can be explained by the fact that renting serviced apartments is less attractive compared to traditional condominiums.

Ski resorts and their profitability

Ski resorts typically show even lower profitability. This is due to the limited tourist season, which includes relatively short winter and summer periods. As a result, experts advise investors to focus on recouping their initial investments rather than aiming for high profits.

Example of a successful resort

A striking example of a successful resort can be the projectDubrovnik Sun Gardenslocated in Croatia, in the city of Dubrovnik. This year, this place is celebrating its eighth anniversary. At the center of this resort is a five-star hotel, which features:

• Room 201
• 207 luxurious apartments

Among the services offered, the following can be highlighted:

• Spa salon with a variety of baths
• Several pools
• Gym
• Tennis courts
• Football match venues
• Beach volleyball courts
• 13 restaurants and bars, including 24-hour room service.

Management and achievements of Dubrovnik Sun Gardens

The management of Dubrovnik Sun Gardens is handled by the company.IO Management, part of the alliance of leading hotel chains in the world –The Leading Hotels of the WorldThe project receives regular awards, including recognition in the category“The best infrastructure”at the Homes Overseas Russian Awards competition.

Currently, the rental program is showing some of the best results along the entire Adriatic coast, while the high level of service continues to attract the attention of numerous property owners from around the world.

Qualified management

The management of Dubrovnik Sun Gardens involves a team of qualified specialists with extensive experience in the hospitality industry across the European continent. The apartments are under the careful supervision of the hotel and are available for rent.

Investment prospects

The rental program is showing outstanding results in this region, and the quality of services provided is only improving its position year by year, making this place extremely attractive for investment. Investors considering potential sources of income from rental resort properties should take such successful examples into account to increase their chances of successful investments and a stable cash flow.

Conclusion

In concluding our review on the topic of resort real estate managed by hotels, I would like to emphasize how it offers every investor the opportunity to find something for themselves. When we talk about purchasing property abroad, it is important to consider the diverse needs and desires. For some, it is merely a way to preserve and grow their capital, while for others, it is an opportunity to enjoy a vacation in ideal conditions without worrying about management or maintenance issues.

Convenience and Investment Appeal

Resort real estate represents a unique combination of convenience and investment appeal. Considering the modern lifestyle, where time has become a scarcity, such projects are the perfect option for busy people. I believe this is a great opportunity to create an asset that will work for you even when you're not around. Moreover, owning property abroad opens up new horizons: it’s not just a place to live, but a lifestyle full of adventures and new experiences.

Guarantees and Stability

An equally important aspect is the fact that resort real estate managed by hotels provides certain guarantees and stability. This is indeed a secure investment that can generate income even in conditions of economic uncertainty. Because of this, I am confident that such properties will increasingly attract both residents of Europe and our compatriots looking for quality real estate abroad.

Creation of a Special Paradise

Ultimately, investing in resort real estate is not just a financial investment; it's an opportunity to create a special paradise for yourself and your loved ones, a place to return to time and again. Therefore, I advise everyone who is still contemplating their future and the choice of ideal housing abroad to pay attention to this attractive market and not miss the chance to enjoy all the benefits it offers.