Investing in a hotel apartment takes luxury to a new level, says Seeff
Wouldn’t life be grand if you could sleep in a hotel every single night? The good news is you don’t need to be a hotel owner to do this, all you need to be is the owner of a room in a hotel! Charles Vining, Seeff’s Managing Director in Sandton, says that their branch currently has several apartments in hotel buildings available and that this type of investing is gaining popularity. “The owner of a hotel apartment has the option of either putting their property into the rental pool (to be rented out by the hotel as part of the hotel suites), or to keep the unit for personal use. If it is kept for personal use, they can still rent the unit out themselves or naturally they can live there. If an owner decides to keep the apartment as part of the rental pool, the hotel will have certain requirements in terms of furnishings/styling, linen and appliances”. Vining continues that this sort of development is becoming increasingly popular in Sandton and they are seeing more and more of these developments going up. “The Capital was recently completed on the corner of Rivonia Road and Empire Drive in Sandhurst and another new development is going up right next door. Both these developments are only a block away from Sandton City. In central Sandton, many of the Legacy hotels are developments in which you can buy apartments and either opt-in to the rental pool or keep it for private use. This includes the Michelangelo, Da Vinci and Raphael which are especially desirable and highly sought-after by international travellers. Parts of Morningside that are closest to central Sandton also have these hotel-apartments. WestPoint and 20 West for instance have been popular for many years”. Vining says the pricing of these apartments varies greatly, but prestige definitely puts a premium on pricing. Price depends on factors like the grade of the hotel rooms, the services offered by the hotel and the position of the apartment within the building. “From an investment point of view, these apartments hold their value well. Property in Sandton central is a fantastic investment. If held for five to 10 years, investors will enjoy good capital gain”. Vining concludes that having an apartment in a hotel building like the Micheangelo is first prize since the Michelangelo is also a mixed use development that includes residential, retail and office space. “Mixed use developments work especially well in the upper end of the market. It is cardinal that there is a business centre very near to the development or else demand will decrease significantly. Another important consideration is that the apartments must be luxurious and should offer concierge services, and the surrounding shops and offices must attract affluent clientele. Security must be carefully balanced with convenience. The Michelangelo for instance ticks all the boxes"
