Hotel Residences is originally a New York phenomenon. While Hotel Residence is a growing phenomenon globally, Cape Town has caught onto this global trend, a trend which has started to catch on in other major cities and holiday hotspots in the world.
“places like Atlantic Seaboard and City Bowl”
Hotel Residence refers to apartments in existing hotels which can be purchased. They essentially allow owners to live in a hotel permanently and enjoy the same services as normal guests do.
Properties are adding a residential facet in both large metropolises where apartment living is the norm as in places like Atlantic Seaboard and City Bowl. In Cape Town, it makes sense that you would want to live in a building that takes care of you as if you were a hotel guest.
One thing to consider when buying in a hotel is whether you are buying to live in, rent out or sign up for the hotel pool where you earn attractive monthly income from the hotel rental pool. Most hotel pools offer annual returns of between 7 and 12 percent.
The rentals are pooled and hotels operate a reservation system to ensure that rooms are rotated on a strict basis, to even occupancy for equal distribution of income to hotel room investors, whilst managing the level of wear and tear of furniture, fixtures and fittings. This is a model where the right of use can be between 30 and 60 days per annum.
The key for investors is return and growth on their capital value.
Purchasing property from a new development means purchasing directly from a developer which does not attract any transfer duties. Transfer duties on property in South Africa rank amongst the highest in the world. Property between R500 000 to R1-million is subject to transfer duty of 5% of the purchase price while anybody spending above R1-million has to pay transfer duty of 8% of the purchase price plus an additional R25 000.
Hotel brands and real estate developers are collaborating to offer branded residences that ensure a trusted, premium lifestyle. Concierge services 24/7, high-end fitness centres and spas, valet parking and private access are just a few of the amenities buyers can expect – turning their favourite hotel into a home.
Some cases in Point:
“the architect evokes the metropolitan sophistication of classic Manhattan”
Signatura has masterfully transformed Nedbank’s head office into The Onyx.
The Onyx, a harmonious blend of hotel and residential offerings, commands the attention of passers-by with its bold external features and keeps guests enthralled with its sophisticated internal finishes and its highly luxurious atmosphere. Onyx is similar in appearance to black sapphire; a rare, striking gemstone, which perfectly mirrors the property’s essence.
Designed by Robert Silke & Partners, the project involved the transformation of a prominent building on the foreshore into stylish residential and hotel apartments. The understated elegance of the architect evokes the metropolitan sophistication of classic Manhattan apartments.
Adding to the allure of a ‘blue-chip’ Cape Town luxury apartment is the Urban Development Zone tax incentive, and the option to add your apartment to a rental pool of residences, which is managed by the Newmark Hotel Group.
Tyson Properties has the honour to present you the 5 luxury Penthouses still available in the new development:
There is no denying that hotel residences are becoming more widespread as the economy gains momentum. People are realizing that being on vacation even when you’re at home is not such a bad way to live.
Saadiq Effendi
082 809 1826
saadiq@tysonprop.co.za
REFERENCES
Andrew Amoils, ‘The rise of luxury hotel residences,’ http://www.property24.com/articles/the-rise-of-luxury-hotel-residences/23211
City of Cape Town, Urban Economic Zone, Map https://www.capetown.gov.za/en/Planningportal/PublishingImages/CapeTown_UDZ_A4.jpg
Denise Mhlanga, ‘Buying into Hotel Room Investments,’ http://www.property24.com/articles/buying-into-hotel-room-investments/20159
Forbes, ‘Inside the hotel residences boom’, http://www.forbes.com/sites/forbestravelguide/2014/05/21/inside-the-hotel-residences-boom/#222c13f77d64
PepperClub Hotel http://www.pepperclub.co.za/newsletters/2010/january/improve-investment-returns.html
Radisson Blu http://signatura.biz/radisson-blu/
