Q: What is Leaseback Agreement?
Ans: A Leaseback Agreement is a contract signed by the unit owner which signifies his interest to lease or enroll his unit to a hotel operator for a certain number of years from the start of hotel operations. During this period, this period the unit owner is entitled to use his unit in the hotel pool for a total of 30 days a year. The units in the pool will be operated as a hotel for the rest of the year, thereby generating revenues for the unit owner. The unit will be maintained by the hotel operator within the given period and turned over to the unit owners upon expiration of the leaseback contract. This agreement may be renewed depending on the decision of the majority of unit owners.
Q: How long is my studio unit enrolled in the condotel program?
Ans: Under this program, the condotel unit is enrolled for ten years for a realistic ROI.
The condotel unit owner has the option to convert his unit into residential at the end of ten years by withdrawing in writing from the condotel pool.
Q: Is the studio unit l purchased ready for condotel operation?
CONDOTEL CONCEPT:
A Condotel a luxury leisure development concept where one may own a condominium unit and enjoy it for thirty days a year and earn income from the same when it is operated as a hotel. This means that one can enjoy a vacation home without the usual concerns of maintenance and upkeep.
The 118 studio units will be Fully-Fitted, Fully-Furnished, and complete with amenities and services a kin to a hotel or a resorts.
All unit owners will be required to sign a LEASEBACK AGREEMENT to authorize OG Holdings to manage pool of units.
EXPERTISE IN HOTEL MANAGEMENT:
LUITON Residences will be run by OG Holdings, the same operator as Metro Center Hotel Centre and Panglao Island Nature Resort and Spa. OG holdings over 15 years of experience in hotel management.
ALTERNATIVE INVESTMENT:
* The 118 studio units will be enrolled in the condotel program whereby owners have the opportunity to earn annual rental income, estimated at 20% of GROSS HOTEL REVENUE depending on occupancy, subject to VAT and other taxes.
* 4 to 7% rate of ROI versus 2 to 3% interest rate of Time Deposit.
PROJECTED RETURN ON INVESTMENT:
Your 3.2 million Investments give the following returns:
* 30 Days Free Occupancy (with an option to use, transfer or sell)
* Income from the 335 Days enrollment in Condotel Operations.
Ans: Yes, provided that you have fully paid the fit-out fee of Php 350,000.00 to comply with hotel quality standards determined by the hotel operator. This can be paid in installment based on the given list of payment options.
Q: What is included in the condotel fit-out package?
Ans: The fit-out package includes basic hotel finishes, furniture, appliances and linens that are required to make the unit ready for hotel operation.
Q: Will there be a condominium/association dues while on leaseback? How about the residential units?
Ans: throughout the leaseback period, the unit owner will NOT have to pay any monthly association dues since these will be shouldered by the hotel operation, as part of their operating expenses. Depending on the size of the units, the condominium residences will have to contribute to the monthly association dues including the CUSA (Common Usage Service Areas, e.g. lobby, corridors, etc.)
Q: When will the units be ready for turnover or hotel operations?
Ans: LUITON Residences Condotel and Residential units are due to be completed and turned over in second quarter of 2015.
Q: If my unit is not rented out as much as the other rooms do l gets a lesser return?
Ans: How often one’s unit is used is not the determining factor for computing one’s earnings. The poll of rooms as a whole and the average occupancy rate of all these rooms shall be the basis of revenue sharing. Respect the terms of the leaseback agreement signed by the previous owner.
Q: How can unit owners collect their payments if they reside abroad? which entity will make the payments?
Ans: Annual rental income payments to foreign residents will be deposited in their bank account by the hotel operator.
*Share of rental earnings are given out 60 days after the end of each calendar year.
Q: When do unit owners start enjoying their 30-day free use and rental earnings?
Ans: Unit owners can start enjoying their 30-day free stay upon full payment of the unit price plus fit-out fee as soon as the hotel starts operations.
Q: Can unit owners avail of their 30-day privilege during peak season?
Ans: Hotels normally charge peak season rates. To be fair to other owners who did not use their units during peak seasons, those who opt to use their units will have to pay for the peak season rates less the lower regular rates.
Q: Can a unit owner avail the 30-day free use for 30-days straight?
Ans: Once room occupancy peaks, there maybe times that the unit owner cannot be accommodated in the same unit straight for 30-days.
This emphasizes the need for the unit owner to book his desired stay ahead of time.
Q: What will happen if the 30-day usage benefit is not availed of during the year?
Ans: The 30-day free use is non-cumulative. Unused number of days during the year shall be forfeited, but what the unit owner did not use during the period goes back to the pool to earn income for him.
Q: Can the unit owner’s charges incurred during his free stay be charged against lease payments?
Ans: The incidental charges he incurs during his free stay have to be treated just like what other hotel guests incur and should therefore, be settled upon check-out. This is done to simplify the computation of the annual settlement of unit owner’s share.
Q: If the unit owner chooses to use his own unit more than 30 days, can he avail of special room rates? Hoe this affect his share in the rental income?
Ans: He will be required to pay the special discounted rate. However, this will depend on the season and availability of his unit which why it is necessary for the unit owner to book at least three months ahead of arrival date. His payment will be included in the overall computation for the rental revenue share.
Q: Can unit owners be allowed to review the audited financial statements?
Ans: Unit owners will be furnished audited financial statements as soon as they are submitted to the Security Exchange Commission, as required by law.
Q: Can unit owners avail of their 30-day privilege during peak season?
Ans: Hotels normally charge peak season rates. To be fair to other owners who did not use their units during peak seasons, those who opt to use their units will have to pay for the peak season rates less the lower regular rates.
Q: Can a unit owner avail the 30-day free use for 30-days straight?
Ans: Once room occupancy peaks, there maybe times that the unit owner cannot be accommodated in the same unit straight for 30-days.
This emphasizes the need for the unit owner to book his desired stay ahead of time.
Q: What will happen if the 30-day usage benefit is not availed of during the year?
Ans: The 30-day free use is non-cumulative. Unused number of days during the year shall be forfeited, but what the unit owner did not use during the period goes back to the pool to earn income for him.
Q: Can the unit owner’s charges incurred during his free stay be charged against lease payments?
Ans: The incidental charges he incurs during his free stay have to be treated just like what other hotel guests incur and should therefore, be settled upon check-out. This is done to simplify the computation of the annual settlement of unit owner’s share.
Q: If the unit owner chooses to use his own unit more than 30 days, can he avail of special room rates? Hoe this affect his share in the rental income?
Ans: He will be required to pay the special discounted rate. However, this will depend on the season and availability of his unit which why it is necessary for the unit owner to book at least three months ahead of arrival date.
His payment will be included in the overall computation for the rental revenue share.
Q: Can unit owners be allowed to review the audited financial statements?Ans: Unit owners will be furnished audited financial statements as soon as they are submitted to the Security Exchange Commission, as required by law.
PAYMENT OPTION:
Be a part of our most prestigious and luxurious first ever Condotel & Residential Condominium in Bohol. An Island Lifestyle, Urban Convenience…..
Please Call:
FLOR RANOLA
Mobile: +63 916 5904 985
Phone: +(632) 871 6589
E-mail: dfrranola2012@yahoo.com
dfrranola 