Advantages 2019-09-20T14:17:35+00:00


Parktonian – Advantages As Compared To Other Sectional Title Hotel Projects

  • The buyer obtains a 1/300th share of the net income from a large viable all-suite hotel with over 30 years of goodwill and track record. The hotel is very well established in the corporate and institutional markets, and has a substantial existing base of repeat business.
  • The original purchase prices for the suites at launch in 2006/2007 was about R442 000 and was very reasonable. This worked out at about R8 500 per sq metre, including built-in furniture, fittings and equipment; and free use of movables. By comparison, Cape Town hotel suites were then selling at about R14 000 to R20 000 per metre, including furniture, fittings and equipment and Durban hotel suites at about R12 800 per sq metre. Hotel suites in Sandton were selling at R25 000 to R30 000 per sq metre.
  • Comparing todays prices, our units have recently sold at R600 000 per unit, and future sales are likely to be at R650 000 or more. These prices are still very reasonable. Our INVESTMENT DETAILS pages show that, over 10 years, Parktonian units have performed well when compared to other property and hotel investments. We have ambitions of growing the value of Parktonian units to about R1 million over several years.
  • Cape Town Sectional Title Hotel units have also moved up in price strongly and units are now selling for in the region of R1.5 million to R2.5 million per unit.
  • The Parktonian Sectional Title hotel units are generally bought for prices that represent a large discount on their replacement cost.
  • Buyers get a growth property, good monthly income, and the possibility of leaving a very valuable property to the kids.
  • Buyers have an investment that “manages itself, markets itself and largely pays for itself”, due to active management by the Management Company.
  • Buyers have flexibility – the investment can be held for long term property growth and long term property income. Or it can be sold at any time, like any other Sectional Title property.

Parktonian – Advantages As Compared To Other Sectional Title Investments

Most people like the idea of owning a second property, other than their own home, as a means of earning extra income and enjoying capital growth. The type of property most people choose when looking for a second property is a second home such as a holiday home or holiday apartment. Sometimes they leave it vacant, when not occupying it themselves, which is costly. Or they do a buy-to-let arrangement.

Owning a second home of this nature is far from a picnic! One has to think about insuring the property, maintaining it, cleaning it, finding tenants for it etc. The latter point is fraught with the problems of having to find reliable agents, do inventories and deal with difficult tenants.

As compared to such a second home purchase, buying a Sectional Title Hotel room offers vast advantages:

  • There is a hotel management company to take care of insurance, maintenance, cleaning, marketing and sales, etc. By comparison to the owning of a holiday apartment, the ownership of a Sectional Title Hotel unit is hugely hassle-free.
  • Usually the income and expenses are pooled, so you do not suffer unduly if your individual unit has a maintenance problem, or has a vacancy for a period.
  • In a properly structured hotel room investment scheme, like this one, the hotel management company is incentivised to maximise the net income flowing to you as owner.
  • In a large hotel project, with many units within it, there are economies of scale. Management, marketing, sales and other costs are spread over many units, and this brings better bottom line profits to owners.
  • Similarly, when several hundred units combine their marketing and sales budget, the resulting marketing is very effective, as opposed to the owner of one holiday apartment trying to find tenants for his unit.