10 reasons to invest in a hotel complex Wyndham Grand Residences Batumi Gonio
The attractiveness of real estate investments is characterized by three factors: profitability, capitalization and liquidity. There are very few markets in the world that combine all of these factors. For example, investors see the world’s leading markets more as a safe haven for capital preservation.
In Western Europe, as a rule, assets are highly liquid, money can be “released” quickly, it is easy to get a loan against real estate. But the profitability of objects often fluctuates at the level of inflation. Take Germany as an example. In one of the most “overheated” local markets, in Berlin, the profitability of income houses is 1.5-2.0% per annum.
Among other things, this is due to legal restrictions on short-term rentals of residential property. Such restrictions are adopted at the level of municipalities in tourist metropolitan areas, where the supply of housing can not meet the demand.
Homeowners prefer to rent their homes to tourists, which causes dissatisfaction among locals. The inability to rent long term destabilizes the labor market, for example, and has other negative economic consequences.
Therefore, this question is a political one. And legislative restrictions are hurting investors’ pockets. But even in non-popular tourist locations in Germany, rental income from real estate (both residential and commercial, office and warehouse) rarely reaches 4.0% and is often accompanied by low capitalization and liquidity of assets.
Yields of up to 7.0% in Europe are available only in narrow market segments. For example, nursing homes or university campuses. Such niches are usually filled, it is almost impossible to enter this market, you can only buy an already operating business, an offer which occurs infrequently.
Wyndham President Dimitris Manikis with European Village managers.
The average real estate yield in the EU countries is 3-4%. And as we have said, this average is inflated by the local depressed markets of “Euroskeptic” countries, where yields can reach 5.0%, but accompanied by low liquidity and capitalization of assets. For example, in the agrarian hinterland of Spain or in the northern regions of Greece with their unstable economy, which are not much in demand among tourists.
Against this background, a truly unique magnet for investment is the Batumi market in Georgia and investment project No. 1 – the opportunity to buy rooms in the branded hotel complex Wyndham Grand Residences Batumi Gonio.
First, the region is growing steadily and has a large reserve of this growth.
Second, investors can invest not just “in the brick,” but in the strength of the Wyndham Grand brand. Wyndham Hotels & Resorts is a world leader in the hotel industry, with a portfolio of 9,300 hotels in 153 countries. The Wyndham Grand is a premium brand with only 70 hotels in the world. Today the company is preparing to introduce more than 1,000 rooms in four new hotels of its luxury brand to the Batumi market.
Thirdly, the Wyndham Grand Residences Batumi Gonio will be managed by Aimbridge Hospitality, the world’s leading hotel management operator. This ensures a high occupancy rate of hotels and, consequently, high profitability. Occupancy brand hotels in Batumi is 58% higher than in non-brand hotels, and the room rates are four to five times higher ($50-60 per night in non-brand hotels against $200-250 in branded hotels). Investors in this project will be able to make passive profits from the work of world leaders.
Fourthly, the profitability of this investment is provided not only by bought “squares”, but also a unique infrastructure – 90 facilities on an area of 15 thousand m2 with the first in Georgia services All Inclusive. This will also provide year-round income, not just in the summer season.
Fifth, you can buy rooms in Wyndham Grand Residences Batumi Gonio in Russia with payment in rubles. And receive income in foreign currency to bank accounts anywhere in the world.
Sixth, the company-developer assumes all investment risks. If an investor wants the company will provide a guaranteed return of 5-7% per annum (compare with the yield of European real estate, which we wrote above).
The seventh reason – the maximum yield is up to 18% per annum.
Eighth – the capitalization of assets is 30% per annum.
Ninth – if the investor wishes, the company guarantees the repurchase of numbers at an increased price. This is insurance against all risks, including the risk of illiquidity, which is extremely important for an investor new to the market.
Finally, the tenth reason is Georgia itself. The most favorable immigration laws (you can stay in the country for a year without a visa), stable economic growth, low tax rates (eg for small businesses – only 1%), no property tax, only 5% income tax on resale property in the first two years of ownership and 0% after two years, the neutrality of the country, Georgian hospitality, clean air, mountains and azure sea (in Batumi suburb of Gonio the cleanest beach in Georgia), Batumi entered the top 5 European cities, attractive for investment according to Forbes.
Come and see the benefits for yourself.
📞 For more information about the project, contact the manager +995 555 407 696
