THE CURRENT HOSPITALITY LANDSCAPE

OUR PIVOT TO COPE WITH COVID

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  1. Reduction in Hotel Size:
  2. Firstly, pre-COVID-19 the hotel was already large, at 300 suites.

    Now, with COVID-19 having intervened, the hotel component of the building would be very much oversized, if it stayed at 300 suites.

  3. Pivoting From a Hotel-Only Building to a Lifestyle Centre Building With Both Hotel and Apartment Components:
  4. Braamvest Trust, the owner of 170 of the 300 Sectional Title (ST) units in the building has adopted what it believes is a win-win conversion: Converting some 100 to 200 of the 300 Sectional Title (ST) suites into one-bedroom apartments, and correspondingly reducing the size of the hotel component to 100 to 200 suites with extensive conferencing, meeting and other hotel facilities.

    The building is now being promoted as the Parktonian Lifestyle Centre, with the aim of creating an ambience in both the apartment and hotel components that is very attractive to trendy up-and-coming young professionals.

  5. Benefits to Apartment Residents of Living in a Building With a Luxury Hotel Component:
  6. It is believed that a 100 to 200 luxury one-bedroom apartments, located within a Lifestyle Centre containing a hotel, will be very lettable at higher rentals than comparable apartment-only buildings because of the following factors:

    An operating luxury hotel environment offers many premium activities and services that most apartment blocks cannot offer. These include on-site restaurant and bar services, room service, laundry service, mini-bus transport services, heightened security etc.

    The apartment contain a full sized desk/workstation that means that residents can work from home without having to pay additional office rent.

    Also, with judicious use of nearby Gautrain and the Parktonian’s shuttle bus services, a resident can possibly obviate having to own a car – so making further savings.

    In addition, this particular hotel has a most spectacular Skylevel, with a bar/terrace and outstanding cityscape views over the city. There is also an outdoor pool and a gym on the Skylevel.

    It is likely that these benefits will be very attractive to the trendy up-and-coming young professionals being targeted.

    The following info on our Sectional Title scheme will all apply again in a post-Covid world, albeit with a smaller sized hotel involved:

INVEST NOW

The Sectional Title Hotel Room Concept

In essence, individual rooms or suites within a hotel are owned by separate investors who have title to that particular room or suite.

Usually all the owners within an individual hotel complex “pool” their rooms or suites, and appoint a management company to run the hotel. The owners in that complex then share the net rental income generated by the complex as a whole, after costs and management fees.

Sectional Title Hotel room ownership is comparatively problem free. The management company handles the myriad of chores that the owner of a stand-alone rental property normally has to contend with.

WHAT YOU NEED TO KNOW

Our Parktonian Sectional Title Project

This project was launched in 2006/2007. The 300 virtually identical hotel suites in the hotel were registered as 300 Sectional Title units. Of those the bulk were retained by the trust of the original owners and the balance were sold off to external investors.

Our Sectional Title project is unique in that all 300 unit holders also hold a 1/300th share of the common areas within the hotel. These house the bar, restaurant and major conferencing facilities, etc. So every single Sectional Title unit owner receives 1/300th of the net income after costs from all 300 hotel suites PLUS 1/300th of the net income after costs from the food, beverage and major conferencing facilities. Payments are made monthly.

See our INVESTMENT DETAILS pages for full information on our Sectional Title Hotel room project.

Those pages will show that Parktonian units have performed well over a 10 year period when compared to other types of property investment and hotel investment. Parktonian investors have never had to pay levies, and have received substantial uninterrupted monthly distributions over the period. So our existing investors say that they have a good income-producing property investment, which is also a good property growth investment, and which is hassle-free.

WHAT YOU CAN EXPECT

Resales of Existing Presold Parktonian Hotel Sectional Title Units

Recent resales have taken place at some R500 000 – R600 000 per unit. Sales from now on are likely to be at about R550 000 – R 650 000 or above per unit.

The units are privately owned, so we as managers of the hotel are not always aware of owners who wish to sell or investors who wish to buy. We urge you to keep in touch with us, via this website, as we may be able to put you in touch with a good Estate Agent or a potential buyer or seller, depending on your interest.

GET IN TOUCH WITH US

Purchase of Tranches of Sectional Title Units

The Trust which owns the bulk of the units may in future consider selling further units, so again anyone interested in a good income-producing property investment which is also a growth property investment is requested to contact us via this website.

Anyone interested in approaching the Trust should contact the Protea Hotel by Marriot Johannesburg Parktonian All-suite Financial Manager, Mr Klaus Kubirske at +27 11 403 5740, or +27 82 888 4089 or klausk@parktonian.co.za.

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