Wouldn’t life be grand if you could sleep in a hotel every single night? The good news is you don’t need to be a hotel owner to do this, all you need to be is the owner of a room in a hotel.
Apartments in hotel buildings are a new type of property investment and this type of investing is gaining popularity.
Having an apartment in a hotel building like the Michelangelo is great since the Michelangelo is also a mixed-use development that includes residential, retail and office space.
The owner of a hotel apartment has the option of either putting their property into the rental pool to be rented out by the hotel as part of the hotel suites, or to keep the unit for personal use. If the hotel apartment is kept for personal use, they can still rent the unit out themselves or naturally they can live there.
If an owner decides to keep the apartment as part of the rental pool, in most instances the hotel will have certain requirements in terms of furnishings/styling, linen and appliances.
This sort of development is becoming increasingly popular in Sandton and more and more of these developments going up. Some examples are The Capital n the corner of RivoniaRoad and Empire Drive in Sandhurst .
In central Sandton, many of the Legacy hotels are developments in which you can buy apartments and either opt-in to the rental pool or keep it for private use. This includes the Michelangelo, Da Vinci and Raphael, which are especially desirable and highly sought after by international travellers.
Parts of Morningside that are closest to central Sandton also have these hotel apartments, such as WestPoint and 20 West ave been popular for many years.
The pricing of these apartments varies greatly, however prestige definitely puts a premium on the pricing. Price depends on factors like the grade of the hotel rooms, the services offered by the hotel and the position of the apartment within the building.
From an investment point of view, these apartments hold their value well. Property in Sandton central is a fantastic investment, if held for five to 10 years, investors will probably enjoy good capital gain.
Mixed-use developments work especially well in the upper end of the market particularly if there is a business center very near to the development or else demand will decrease significantly.
An important consideration is that the apartments must be luxurious and should offer concierge services, and the surrounding shops and offices must attract affluent clientele, while security must be carefully balanced with convenience.