Building for the future
There is little doubt that Pattaya is a city that is on the up. Visitor numbers are increasing year on year and these visitors are coming from all four corners of the globe. The infrastructure is already in place to cope with increases in demand but is being improved all the time. Pattaya is booming and big investments are being made in building for the future by all major parties – City Hall, the developers and of course the hotel chains. Everyone is gaining from this boom and it seems that they all want a piece of the action.
Pattaya started life as a sleepy fishing village but has grown beyond all recognition, and after all, this is one of the things that Pattaya does best – it evolves. Fifteen years ago, the main market was single men looking to enjoy the twilight of their life if warm surroundings in great company. Nowadays it has so much more to offer than just a vibrant nightlife that of course still exists. It appeals to families, the young and old, and everyone is catered for. The city is on the up and confidence is high.
Naturally to continuing growing there needs to be investment and as we have already touched upon, what was popular ten years ago, is not as popular now. The hotels need to adapt, the shops need to adapt, bars and restaurants need to adapt so what is being done to address the altering demand? The current trend is for short-term lets, accommodation that is required for periods of in the region of two weeks in both hotels and self-catering complexes. There is potentially an oversupply of condominiums at the present time so investment is need is these other areas.
It is for this reason that developers and hotels are offering rental guarantee concepts where by investors are guaranteed a certain return for given period of time with projected earnings, rather than guaranteed earnings offered in the following years. As these types of deal are offered by reputable developers and well renowned hoteliers, there is little surprise that interest and indeed uptake has been high. After all, investors gain a passive income from a property that has huge potential for capital growth all managed by some of the best hotels in the world!
An example of one such rental guarantee concept that is completed is available from the Amari in Pattaya. They are offering investor 5% p.a. for five years with projected returns of in excess of 8% in future years. Hugely appealing, I am sure you will agree when you consider that this is a 5-star hotel, in a prime location in a city that is growing year on year. As passive incomes go, this seems perfect as the risk is low but you still get healthy returns and potential for capital growth.
There are examples of other similar schemes on the island of Phuket. These are offered in hotels owned by Ramada and Best Western. Although these projects are still under construction the deal here is guaranteed returns of 7% p.a. for five years and projected earnings of 10% p.a. in subsequent years. Once again you have all the benefits offered by the Amari of great returns, potential for capital growth, all being taken care of by a 5-star hotel.
Surely these rental guarantee concepts are investments that you should be considering?