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Key selling points
- Secure, high-yielding condo-hotel investment in the city centre
- Capitalising on Panama City's average 85% hotel occupancy rate
- Net running yield 10+% based upon 75% occupancy
- Guaranteed income for year 1 to ensure hotel is established
- Very first phase of pricing, with 6 sets of rises to follow
- Price includes full furnishing package
Key Features:
• Secure, high-yielding condo-hotel investment in the Heart of Panama City
•Very first phase of pricing, with 6 sets of rises to follow
• Guaranteed income for year 1 to ensure hotel is established
• Capitalising on Panama City's average 85% hotel occupancy rate
• Net running yield 10+% based upon 75% occupancy
• Price includes full furnishing package
• Up to 8 weeks per year personal usage allowed
• Minor repairs undertaken by hotel owner i.e. at zero costs
• Exclusive release to our clients
• Completion Q2 2009 with 30-40% deposit payable
• Tax benefits for hotel-based investments
As our client, you get the opportunity to purchase the very first units available at the highest possible yield
Background
Panama City currently has one of the world's highest hotel occupancy rates (85%) and with the ever-increasing tourism and general interest in the area, will suffer from an even greater shortage of available hotel space as we move forward.
There is a gap in the market for a centrally located boutique hotel, and this project offers the client the opportunity to take full advantage of owning a very high yielding condo-hotel unit in a pre-construction environment, weeks from being released to the general investor public, run by a well-established US Hotel Operator and at the very first pricing phase.
It also allows the client to diversify an existing portfolio in that this type of investment could be classed as a mix between commercial and residential, thus the income stream should be both high and secure. In addition, capital growth is certain given the 6-7 price rises that will occur during the various phases of sales.
With prices so very low in this first phase, net income yields on deposit are estimated to be in excess of 10% per annum. Combine this with the security of the income and growth, and the investment looks a solid one.
Due to the work we have put in preparing this deal with the developer, we have been given exclusive rights to the development and you, as clients of ours, will thus receive the maximum benefit as a result.
Development
The Hotel will be start construction in Q3 2007 with expected completion in Q2 2009.
The building itself will comprise of 144 units spread equally over 18 apartment floors, each containing 8 apartments (a mixture of 1 bedroom and 2 bedroom lock-off units). Other floors house the social areas incl pool, business centre and parking etc.
The building is located on Aquilino de la Guardia, between Via España and Calle 50.
Hotel Management
The Hotel will be managed by an established US hotel operator, with over 15 years' experience in working on behalf of Starwood, Hilton, Holiday Inn and other famous hotel brands.
The operator, with its HQ in California is affiliated with various trade organisations including CLIA (California Lodging Industry Association), NBTA (National Business Travel Association) and the CCC (California Chamber of Commerce).
With average occupancy rates today in Panama City just over 85%, there is confidence that this well-established hotel management group should function well and provide a stable best-in-class service (and thus income to the owner).
Payment Schedule/Pricing
There is a 30% deposit and then nothing further to pay until completion. The payment schedule is likely to be as follows:
• $10,000 reservation deposit payable now
• 15% at signing of contract
• 10% at ground breaking
• 5% 6 months after ground breaking
However, a 40% deposit schedule is being negotiated whereby the additional 10% paid will earn interest at 11% per annum (resulting in a discount from the purchase price). More information to follow shortly.
During the first year, to allow the hotel to get fully established and marketed, the developer is offering an 8% net rental guarantee to allow early investors.
For a full price and availability list please contact us asap as units are selling quickly. Prices will include a full furnishing package.
The Hotel Owner will maintain the first right of refusal over any resales. The sales contracts cannot be "flipped". The units will be managed by the Hotel Operator on either a 99 year lease, or a renewable 5 year lease - again, to be confirmed.
Financial projections
With average occupancy rates high, room rates steady and first phase pricing so very low, the financial projections for this investment opportunity look very solid.
Summary
A secure, high yielding, tax efficient, capital city, high growth property investment in one of the world's hottest real estate markets at the very first pricing point via a first release of units offered exclusively to us.
Compelling? Of course it is. Contact us now to discuss, units are selling very quickly.
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