Aparthotels are popular all over the world. Now, they’ve become an attractive option for private investment in Ukraine. We can easily predict that this segment will only grow in the future. If you look at the Global Business Travel Association (GBTA) research and analysis, you will see that business travel is growing again and predictions for this industry for close future are following:
- Because of the growth of vaccination all over the world GBTA expects increase in business travel spending
- In 2022, experts expect further acceleration in business travel, including international business travel
- A full recovery to pre-pandemic levels is expected by 2025.
Taking into account the forecasts of experts, you should definitely look at apartments for business tourism in Kyiv and consider investing. This type of property offers a more comfortable alternative to a standard hotel room and is popular among business travelers and tourists. Private investors buy apartments at the initial stage of construction. Before investing you need to know exactly what you are getting into and what you can expect as a serviced apartment owner. Let’s look at the “Standard One Terminal”, that is a business-class aparthotel, located in Kyiv, and find out why such a property is attractive for investment.
Kyiv is the biggest business center in Ukraine. The headquarters of large Ukrainian companies and representative offices of foreign companies are located in Kyiv. That is why there is a constant flow of business travelers in the Ukrainian capital year-around.
The “Standard One Terminal” is located in the heart of international and intercity transportation: close to the Kyiv Central Railway Station, Kyiv International Airport (IEV) and express transit to Kyiv Boryspil International Airport (KPB). For business travelers, it is the perfect place to stay.
Everything for living and business activity
For guests “Standard One Terminal” is a four-star hotel at a very attractive price. All apartments are ready for the arrival: furnished with modern design, equipped with a kitchen, have a working network, stoked with all essentials and all home appliances are connected. The staff will provide all hotel services for residents. The complex has its own restaurant, 25th floor lounge with a great view, conference hall and gym. On the 4-th floor of the aparthotel there is a coworking area, where you can accommodate the whole team or work comfortably alone.
Apartments can be rented not only for a daily rate, but also for a longer period. For example, apartments in “Standard One Terminal” can be rented for a month or for a year, depending on clients’ needs. Such an approach would give more benefits for residents than they would get in a hotel of the same class.
Exemption from all operating expenses for investor
Apartments in “Standard One Terminal” are operated by a professional international hotel operator, which deals with everything related to the property maintenance and work with tenants: marketing, search and accommodation of guests, cleaning and renovation. 24/7 security and video surveillance guarantees full safety for tenants and investors.
For the investor, it is an opportunity to buy an apartment and receive a share of the hotel’s profits without the hassle of real estate and maintenance. Current repairs and other maintenance costs of the apartment are included in the commission for hotel management (reserve fund), subject to agreement with the management company.
Guaranteed annual yield from 5,5% in USD
There are two ways to invest in the building complex:
- Income security. Buying real estate with transfer to the S1 Rent management company guarantees an income of 5.5 % per annum in USD. The income is recorded in the contract and paid irrespective of a situation.
- Apart-hotel. Buying real estate with transfer to the international hotel operator, forecasted rates of your profitability will be up to 15% per annum in USD through efficient management, provision of additional services and a combination of daily and monthly rentals. This model assumes that an investor’s profit does not depend on a specific apartment. The total rental income of the aparthotel is distributed among investors proportionally in accordance with the number of apartments owned by the investor. Investors will receive a profit quarterly, but not earlier than 7 months from the opening of the aparthotel. Residents and non-residents have a general procedure for payment of income.
When investing their own money, a private investor always wants to see a transparent picture and be sure of the financial side of the issue. In the case of “Standard One Terminal” Aparthotel, the finances are controlled by an external auditor. All investors will receive regular finance reports.
All information about the hotel will be available to owners in the form of quarterly electronic reports. An independent external auditor will monitor the activities of the management company (hotel operator) and conduct a financial examination of the results of its work for the reporting year.
Investing in an aparthotel means that you have your own real estate in Kyiv, in which you can always stay when you come to the city on business.
As you can see, apart-hotels are a new type of real estate that provides guaranteed income with minimal time and money, a more advanced management model compared to the hotel business and the development of infrastructure at the highest level. The apartment brings the maximum profit only as a part of the hotel existing under a single hotel brand because in that case the professional hotel operator with huge experience will be responsible for managing the property and for hotel occupancy rates.