To many who are not familiar with the real estate industry, these two sectors might be new to you, and you may be confused about what the difference actually is. However, as much as both may be similar in getting vacation accommodation set up, there are many differences for investors. Therefore, this article will cover extensively the timeshare property ownership model, the difference between owning a timeshare and owning a hotel apartment, and how to alternatively invest in a hotel apartment right here in Ghana with the Pelican Hotel Apartment model.
Timeshares are also commonly known as vacation ownership. A timeshare is a property in a resort unit that allows you to take vacations during a specified period every year. In essence, you own a “right to use” but not the property under a time-sharing agreement. Owners of timeshares own a specific period in a resort, and that time is guaranteed every year. Usually, you buy “time” in weekly increments and can be converted into points you can use in other resorts as long as the resort is part of an exchange programme. Timeshare is not seen as an investment, it’s a lifestyle product that assumes you will vacation at the same time every year.
A hotel apartment is a condominium project that is operated as a traditional hotel. The units will be individually owned by investors. The owners then have a leaseback agreement with the hotel management company who then rent out their units like any other hotel room through the hotel's rental program. A hotel apartment is usually sold as an investment property as capital gain is very strong and rental returns are high. It is similar to renting an apartment, but with no fixed contracts, occupants can "check out" whenever they wish, however it cannot be used as a full-time home by the owners.
Timeshares and hotel apartments differ significantly in terms of their flexibility. A timeshare purchase requires you to decide on a specific resort(s) for a specific week or two to use your vacation home each year. This essentially means you have to take a vacation at the same place at the same set time, which can be challenging at times.
However, if you are buying a hotel apartment, it affords you far more flexibility in planning your vacation or usage, you can use it whenever you want. In addition, you’re not bound to the exact dates each year, which is excellent if you have an unpredictable schedule. However, there are restrictions that prevent it from becoming a permanent residence and in order to achieve the highest possible returns personal usage is limited.
As it may be evident that the price of a timeshare is typically lower than the hotel apartment, there are quite a few things you should consider if you want to invest in either. Timeshares are less expensive since you're purchasing time, not real estate. You will not receive any of the income generated by anyone using your timeshare during the 50+ weeks others use it.
On the other hand, investing in a hotel apartment requires capital but you’ll receive deeded ownership of the property. Although more expensive, (you are buying the whole property), hotel apartments give you more for your money than timeshares. This is because hotel apartments invest more of your money in high-quality finishes than in sales commissions, as seen in Timeshare. In addition, as a result of the hotel division's rental program, your condo unit will be rented, allowing you to earn revenue and offset your debt service costs.
Buying a hotel apartment unit is a lot more advantageous than buying a timeshare since you're essentially purchasing a property rather than something ambiguous and fluid like “duration”. This fact alone will make hotel apartments more desirable for the investor.
A timeshare's value depreciates from the moment it is purchased. Because of many resales and a continuous stream of new developments, market values have been low and in fact resales are very difficult. In most cases, people who buy a timeshare have it for life, whether they want to or not.
Condo hotels are a relatively new type of investment in Africa and they are very limited in Ghana, with Pelican, the first of its kind. Currently, the supply is small, while demand is high and growing, contributing to rapid and significant appreciation. In addition to reselling the unit, you have to keep in mind that you are selling the unit itself and the lifestyle that comes with the high-end, amenity-filled property. The majority of condo hotels in pre-construction are already sold out.
The Pelican Hotel is the first of its kind in Ghana. Devtraco Plus offers you the unique opportunity to invest in deluxe branded hotel apartments, and The Pelican is one. Through our world-class Pelican Hotel Apartments, you can join the global community of hotel investors right here in Accra. This plush complex will feature the best of amenities; a modern swimming pool, fine dining restaurant, contemporary conference facilities, concierge, ample parking, landscaped gardens, backup power, water reservoir, 24/7 Security and, most important, state of the art furnishing.
Devtraco Plus is the first real estate developer in Ghana to offer this investment model, which will offer fully furnished and fitted hotel apartments for sale. Investors then lease their unit(s) to the prestigious hotel management company, Devtraco Hospitality Holdings (DHH) a sister company of Devtraco Plus. In addition to attracting guests, DHH will manage the development's facilities, ensuring a hassle-free investment for you.
It is expected that The Pelican Hotel Apartments will begin operations before the end of 2022. Most of the units in Devtraco Plus' previous eight projects were sold off-plan. Potential investors can take a tour of the hotel's apartment showroom to have a feel of the fittings and furnishings. Investing in the Pelican Hotel gives you strong returns based on the hotel's projected performance, and if you later decide to sell, you can sell for more than your current cost. Devtraco Plus estimates that your property price will increase at a rate of at least 5% per year. To get more information simply request a viewing with our sales experts via our online portal or call us on 0270000004.