Commercial facilities

Hotel business: the best real estate investments in the Philippines

the best real estate investment

The Philippines will provide the best real estate investment

Tourism in the Philippines is well developed. This is due to the popularity of the country among tourists from Korea, Japan, China and the USA. Therefore, the most promising real estate industry on the Islands – hotel. It brings 20-30% of the invested funds per year: over the past 5 years, the business has been passing the breakeven point.

The country’s potential is high: it includes about 7000 islands, which are not well known among potential tourists (in comparison with some other places in Southeast Asia). Marketers predict that in the next 10 years the tourism industry will grow significantly. The influx of tourists from Russia is expected, as between the countries there is a visa-free regime for a trip of up to 30 days.

Since the 2000s, the country experienced a rapid economic recovery, steadily rising property prices, but have not yet reached its peak. The policy of selling “Golden visas” also contributes to the prosperity of the state. In order to obtain a residence permit, it is enough to invest in real estate or other business from 75,000 dollars.

An important detail is related to the prevalence of English among the local population.

The best real estate investments: choose the type of hotel

Despite the fact that the Philippines is an archipelagic country with a huge number of islands, attractive to tourists at the moment no more than 30, equipped with sufficient infrastructure can be called. The cities of Manila and Cebu are especially recommended for investment. They are transit for people and commodity flows. In the cities there is a need for hotels of low price category, renting rooms for a day or hourly.

Hotel real estate in the country starts with 300-600 thousand dollars. If the price is lower, it may indicate a dilapidated condition, a bad location or problems with documents. Registration of the transaction and preparation for the opening will cost another 10-30 thousand.

Investors should be interested in objects in close proximity to the sea with the number of rooms from 20 and more: in other cases, the risk of non-repayment of business is high. It is important to have contracts with the tour operator and a franchise from a large network.

In the country, services and agencies for finding hotel real estate are poorly distributed, so the investor is recommended to choose objects on location, based on preferences and experience.

Hotels in the country have a common classification.

Pension house/apartelle (nursing homes) designed for permanent residence of elderly people. Among small investors, investments in this type of real estate are considered risky.

Condominium (apartment buildings) – popular among nonresident aliens. Always have visitors (in contrast to the classical hotels). Among the disadvantages is a relatively low monthly fee.

Resort – any hotel by the sea (or 2-3 line) with a swimming pool.

Hotel is the same as the resort, but in the city. It is popular among transit passengers.

In the country, the property is executed through public notaries and law firms, the law enforcement system is developed at a sufficient level, so investors usually do not have problems.