A condotel (short for Condominium Hotel) is a condominium project which offers unit owners the opportunity to earn by placing their units in a rental management program to be operated like a commercial hotel. All units enrolled will be managed by a separate operator, who shall also be responsible for the over-all hotel operations including general housekeeping and maintenance, food and beverage operation and concierge services.

How can a unit owner earn from the rental management program?

Upon enrolment of a unit in the rental management program, it will become part of a rental pool of units to be rented out on a daily, weekly or monthly basis, from which unit owners can expect to receive a percentage of the room revenues.

For Pontefino Residences – Condotel, the rental management program will be called the Leaseback Program, wherein 50% of the gross revenue will be distributed among the enrolled unit owners, and the other 50% goes to the operator to cover for management fees, housekeeping, maintenance and utilities.

Can an owner use his unit even if it is enrolled in the Leaseback Program?

Yes. A unit owner who enrolls his unit in the program can enjoy total of 24 days each year usage of the unit, subject to room availability. 3 weeks advance notice will be required by the hotel operator to properly manage the booking.

Should the unit owner wish to use his unit more than the allowed number of days in a year, the unit owner will have to pay the regular room rates, which shall also be included in the computation of rental revenues share.

If the unit owner was not able to utilize his usage privileges within a year, the unit shall continue to generate income as part of the rental program.

What are the advantages of owning a Pontefino Residences-Condotel unit?

Fully-fitted, fully-furnished well appointed units – no need to hire costly interior designers nor look for furniture and appliances.
Earn back your investment in as fast as 7 years, while enjoying high investment return of around 15% per annum, without the hassle of being a landlord.
Rental revenue to offset some of the ownership expenses.
Worry-free upkeep of the unit without paying for the typical Association Dues or Maintenance Fees since these will be shouldered by the hotel operator.
Continuous income whether your unit is actually rented out or not because of the proportionate distribution of income from rental pooling.
Possession of whole ownership of a residential unit evidenced by a Condominium Certificate of Title while enjoying the benefits of services and facilities of a deluxe hotel.
A vacation home available for use anytime you want.
Strong likelihood of property’s appreciation because of pre-selling stage, superb location and excellent upkeep of units.

Hotel operation of the Pontefino Residences-Condotel will be handled by Hotel Concepts, Inc., the company behind Hotel Pontefino. With a professional management company to implement the Leaseback Program, unit owners are assured of efficient marketing and rental of their units, excellent upkeep and maintenance and continuous improvement of all amenities and facilities.

Upon availability of the units, a buyer who has paid at least 50% of full amount will be given the option to enroll his unit in the Leaseback Program. Monthly rental revenues will be paid to the unit owner in cash, and may not be directly applied to his account to partially offset monthly amortization/payments for his unit. Rental revenue for the month will be forfeited upon buyer’s failure to pay his amortization on time.
No joining fees shall be collected from unit owners who wish to join the Leaseback Program, provided, their units are still unused at the time of enrolment. Unit owners who have initially occupied the units may still be allowed to join the program, but are subject to HCI’s approval. Certain amount, depending on the unit’s condition, will be collected from unit owner to cover the refurbishing.
Upon termination of the Leaseback Agreement, an enrolled unit will be returned by Hotel Concepts, Inc. to the unit owner in condition as it was.
The minimum period a unit owner can have his unit enrolled in the Leaseback Program is 1 year, renewable annually.
A unit owner who enrolls his unit in the program can enjoy total of 24 days each year usage of the unit subject to room availability. 3 weeks advance notice will be required by the hotel operator to properly manage the booking.
Should the unit owner wish to use his unit more than the allowed number of days in a year, the unit owner will have to pay the regular room rates, which shall also be included in the computation of rental revenues share.
If the unit owner was not able to utilize his usage privileges within a year, the unit shall continue to generate income as part of the rental program.
Once a unit is enrolled in the Leaseback Program, the condotel/hotel operator shall take care of the association dues. A unit owner who decides not to enroll his unit under the rental pooling will be charged with pre-determined monthly association dues and maintenance fees to be handled by the HCI. Monthly association dues is estimated to cost around P40.00 per square meter based on the unit’s floor area, which is P2,000.00 for a typical 50-sq.m. unit.

Projected Profitability based on 50/50 Profit Sharing on Gross Revenue

	1-Bedroom Unit		2-Bedroom with Loft
Room Rate (net of SC & VAT)	P3,400		P9,000
Owner’s 50% Share on Room Rate	P1,700		P4,500
Occupancy Rate	40%	80%	40%	80%
Annual Income	P 231,880	P 463,760	P 613,800	P 1,227,600
Investment (Selling Price)	P3,570,000	P3,570,000	P8,159,200	P8,159,200
Annual Return on Investment	6.5 %	13 %	7.6%	15 %
Payback Period	15.4 Years	7.7 Years	13.2 Years	6.6 Years

Note:
Room rate for the 1-BR unit is based on prevailing rate (net of VAT and Service Charge) of a Premium Room at Hotel Pontefino. Projected revenues are indicative values for presentation purposes only, and are not guaranteed by the developer.