May 2014, subject to change
RENDERING - FINAL PRODUCT MAY VARY
WHAT IS A CONDO HOTEL? In July 2012 a new tourism law passed in the Balearics allowing for a concept that has been successful in the US for decades: the condo hotel. Generally a condo hotel is just an ordinary hotel, the only difference being that the units are individually owned. Owning a hotel suite and enjoying all of the luxury that comes with living in a hotel is a real estate concept worth considering. For those who lead demanding lifestyles, especially whilst on holiday, a suite within a condo hotel is not only
a vacation property without the hassle but also promises attractive rental income whilst away. The first-class hotel management takes care entirely of all the maintenance, rental and administration requirements of your suite. Portals Hills Boutique Hotel, the first condo hotel in Mallorca, opens its doors in spring 2015. “Interest is overwhelming and reservations are going quick from an illustrious crowd of buyers from Europe as well as the US.” Says Katharina Heymann, Sales Manager of the exclusive broker Finest Selection Real Estate.
What the real estate expert is saying about Mallorca „The island is fast becoming the #1 destination in the Mediterranean. With both private and large scale investors discovering the opportunities available to them, investing in luxury property in Mallorca is more atractive than ever before. Revenues from this type of investment yield far more than many other real estate investments on the market today and demand for high-end living in first class locations is far higher than it has ever been. Coastline Luis M. Heymann, Developer and Exclusive Broker
properties are limited as is the array of luxury properties available so high brow buyers are seeking out investments in premium areas such as Puerto Portals, Puerto Andratx and Palma‘s best adresses.“
www.portals-hills.com
FREQUENTLY ASKED QUESTIONS A condo is a privately owned 100% hassle-free holiday home within a first-class hotel. Aside from receiving rental income, owning a condo is a lifestyle in its own right - enjoying 24 hour services, lush surroundings and state-of-the-art amenities.
1. What is the difference between a timeshare and a condo hotel unit? With a timeshare you only buy weekly rights during a certain time of the year… whilst a condo is a property, an asset and therefore a smart long-term investment yielding a rental income, which can be sold or inherited at any time. 2. Why is a condo a 100% hassle-free property? Living in a first-class hotel you enjoy all of the comfort of the hotel services such as 24-hour concierge and room-service as well as the on-going maintenance of your property. The hotel management takes care of all the marketing, rental and administration of your property.
MASTER BEDROOM RENDERING - FINAL PRODUCT MAY VARY
3. Can I use my condo in Mallorca at any time? A condo hotel is primarily a hotel, not a residential property. The local regulations limit owners‘ use of a condo to a maximum of 60 days per year, although your are totally flexible regarding the dates you visit and you have the option to block fixed weeks in advance. The rest of the year your condo has to be made available to the hotel for rent and you are encouraged to make your condo available as much as possible to generate maximum rental income.
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FREQUENTLY ASKED QUESTIONS 4. Am I guaranteed my own condo when visiting? The hotel management does its upmost to make your own unit available when visiting, however, being a hotel you are asked to advise the hotel management well in advance, especially during peak season. Reserving fixed date within a year is an advantage: In peak season you can block a maximum of 14 nights and/or a minimum of 4 nights. Should your unit be occupied you will be placed in an equally furnished and decorated one. 5. How do I know how many nights my condo was rented out? An advanced software system is in place assuring all owners’ units are equally rented out. Every owner has online access and individual owner accounts. The statements will reflect rental occupancy, rental revenue, and quarterly condo fees as well as the reserve fund cost. Owners are required to maintain a minimum balance in the account to cover any charges and disbursements. 6. How much is my share from the daily rate rental? Your share is 50%, with the other 50% going to the hotel management. This ensures your condo is fully managed in our absence and covers the full maintenance of your condo, including the arrangement of all rentals, expenses, staff, marketing and so on. 7. What is the yield I can count on? Based on the official statistics of comparable categories, locations, occupation and overnight prices; the operating company has calculated a gross yield of approximately 5% per year of the acquisition price (based on average occupation). 8. Where and how will I have to declare tax? Being a non-resident in Spain, you will also have to apply for Spanish tax number (NIE) and based on the European Union’s Regulations, declare your rental income in Spain and back home; having said this, there is a minimal hassle involved. You may either leave it in the hands of a tax accountant recommended by us, or one assigned by yourself. 9. Does the hotel management guarantee rental income? No, however upmost effort is made to market your unit and to occupy it as much as only possible at the highest daily rate. The more nights you can make your condo available to the hotel management, the more rental income you can generate. The hotel management use various channels to achieve as many nights bookings from direct reservations, partner hotels, travel agencies to tour operators. 10. Can family and friends use my condo? Yes, family and friends can use your condo at any time. You are, however, encouraged to make your condo available to the hotel whilst it is not in use, guaranteeing the maximum rental income and return on your investment. 8. Where and how will I have to declare tax? Being a non-resident in Spain, you will also have to apply for Spanish tax number (NIE) and based on the European Union’s Regulations, declare your rental income in Spain and back home; having said this, there is a minimal hassle involved. You may either leave it in the hands of a tax accountant recommended by us, or one assigned by yourself.
www.portals-hills.com
FREQUENTLY ASKED QUESTIONS 9. Does the hotel management guarantee rental income? No, however upmost effort is made to market your unit and to occupy it as much as only possible at the highest daily rate. The more nights you can make your condo available to the hotel management, the more rental income you can generate. The hotel management use various channels to achieve as many nights bookings from direct reservations, partner hotels, travel agencies to tour operators. 10. Can family and friends use my condo? Yes, family and friends can use your condo at any time. You are, however, encouraged to make your condo available to the hotel whilst it is not in use, guaranteeing the maximum rental income and return on your investment. 11. Are there any additional expenses? A 15% administration fee and a 3,5% reserve fund is deducted from your share of the published daily rate for the administration of the rental pool and maintenance of the units and communal spaces – guaranteeing the perfect state of the property. When the condo is used by the owner a 15% (Penthouse 10%) of the published daily rate will be charged for maid service, breakfast, local taxes and the reserve fund. 12. Is there financing available when buying? Yes. We work closely with local and international banks that offer financing for your condo, with attractive conditions. Being a property a condo is a secured asset and as an owner you are responsible for settling your mortgage and any other corresponding expenses directly. 13. Who will be liable for construction defects and secondary damages? Just as in your home country, a Spanish constructor is liable for any constructional and consequential damage or defects. An independent technician appointed by the compulsory building insurance company is continuously controlling the construction and certifying the building quality. 14. What are the closing costs? It essentially means that there is a 10% real estate transfer tax, as well as approx. 2.5% register, notary and administrative costs.
www.portals-hills.com
FLOORPLANS
PENTHOUSE SUITE
PENTHOUSE
DELUXE SUITE
KEY WEST SUITE
www.portals-hills.com
AVERAGE DAILY RATES, OCCUPATION & REVENUE Portals Hills Hotel (non-binding calculation)
2014
Deluxe Suite
Net-Revenue
Daily Rate
Avrg. Ocpt.
Gross Rev.
Agencies %
January* 0,00 0,00 0,00 0,00 0,00 February 270,00
30,00
2.268,00 15,00
1.927,80
March
320,00 40,00
3.968,00 15,00
3.372,80
April
320,00 40,00
3.968,00 15,00
3.372,80
May
360,00 60,00
6.696,00 15,00
5.691,60
June
600,00
90,00
16.740,00 15,00
14.229,00
July
600,00
90,00
16.740,00 15,00
14.229,00
August
600,00
90,00
16.740,00 15,00
14.229,00
70,00
11.550,00
9.817,50
September 550,00
15,00
October 320,00 60,00
5.952,00 15,00
5.059,20
November 270,00
30,00
2.430,00 15,00
2.065,50
December 360,00
30,00
3.348,00 15,00
2.845,80
Total Revenue 90.40,00 76.840,00 Cost & Revenue calculation Buying price 449.000,00 Land register tax 10%
44.900,00
Buying cost 2,5% 11.225,00 Total investment 505.125,00 Rental revenues p.a. (50%)
38.420,00
15% Administration 5.763,00 3,5% Reserve fund 1.344,70 Total cost 9.267,70 Net-revenue without owner’s use
31.312,30
Yield without owner’s use
6,2%
Owner’s use 7 days in March
1.120,00
15% of published daily rate (service fee)
336,00
Owner’s use 7 days in July
2.100,00
15% of published daily rate (service fee)
630,00
Total expenses 4.186,00 Net-revenue with 14 nights owner’s use
27.126,30
Yield with 14 nights owner’s use
4,9%
*Hotel closed VAT excl./ Subject to change
www.portals-hills.com
/ portalshillshotel
Exclusive Sales Agent Finest Selection Real Estate | Palma de Mallorca
[email protected] | +34 971 911 254
www.portals-hills.com
