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Hotel Managed Resorts - The key to overseas property investment.

8th October 2009

Dunas_beach-to-villas for blogWe all have heard the horror stories that some overseas property investors have experienced.

Developers going bust, part finished developments, shoddy workmanship, differing specifications…the list goes on.

So how do you negate these risks?

In my opinion the answer is by buying on a hotel managed development.

We offer a number of overseas property investments that will be managed by successful hoteliers on completion and have been overwhelmed by the stringent regulations that these hotel companies put in place prior to completion.

For most overseas developers, the pinnacle of success is being able to sign up a world renowned hotel operator to take over the day to day running of your development.
Many developers try and fail, taken back by the sheer level of attention to detail the hotel operators need developers to adhere to.

On average a hotel operated development would need:

  • Higher specification
  • Much more amenities i.e. public space, leisure facilities
  • Higher standard of customer service
  • Bigger room sizes
  • Larger patio‚Äôs or balconies
  • Better site locations
  • Regimented time scales regards completion

Many investors are put off investing overseas by the unknown, lacking the know how to conduct the desired level of due diligence on their chosen development.
If a developer signs up with a 5* hotel operator the finishing must be exactly that….5*!

If investors have any reluctance in investing in an opportunity where a hotel operator is included, take a look at their other hotels, this is the standard that they must maintain.
For instance, the hotel operator in talks with The Resort Group on Dunas Beach Resort is called Sol Melia. Sol Melia is the largest hotel resort operator in the world with over 120,000 hits on their reservation systems per day!

Dunas Beach will be part of their Melia package meaning 5* plus, so for an understanding of the finish needed take a look at their other hotels in the Melia package.

It may be in the best interest of a developer to cut corners and save money but I can assure you that there is no way that a 5* hotel operator would accept this.

Also bear in mind that all of the developers we use retain an interest in the commercial elements of each site they build, so making the very best development possible is the only way to drive people to the development there by making money on the commercial sales.

Many investors may know all of these points but I think they are worth focusing on to alleviate some scepticism that goes with a lot of overseas developments.

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