FLI reports 40% hike in unit owners’ income-A A +A
Tuesday, April 22, 2014
PROPERTY developer Filinvest Land Inc. (FLI) announced yesterday a 40 percent year-on-year increase on the rental income share of unit owners for its Grand Cenia Condotel project in Cebu City.
The company started distributing the sixth release of the rental income to its condotel unit owners yesterday.
The income represents the share of each qualified condotel unit owner-investor from hotel earnings since it began operations in February 2012.
James Montenegro, area general manager of FilArchipelago Hospitality, Inc., the operator of Quest Hotel and Conference Center – Cebu, said the significant increase in rental income share is due to the high average occupancy performance of the hotel for the first quarter, which stood at 80 percent.
He said events like the Sinulog Festival, Chinese New Year and Valentine’s Day enabled them to attract more returning guests and longer-staying corporate clients. He also credited the efforts of the hotel’s sales team in marketing the property locally and abroad.
The Grand Cenia condotel units, which were combined through an asset pool, are used as rooms of the Quest Hotel and Conference Center Cebu. The hotel distributes rental income to each qualified condotel unit owner quarterly.
Montenegro told reporters they are releasing the highest rental income so far since they started operations.
He, however, declined to disclose exact figures, but said the rental income released to unit owners is “the same equivalent to renting a studio apartment in Metro Manila.”
Rent price of a studio-apartment in Manila averages P24,000 per month.
Quest Hotel is a member of the international chain of hotels by Aston International.
It forms part of the 25-storey Grand Cenia located on Archbishop Reyes Ave. across Cebu Business Park. The property has 119 residential condominium units located in the 19th to 25th floors while 432 condotel units are in the 8th to 18th floors.
In their condotel system, Montenegro said the units are assigned back to the hotel operator for 25 years and a unit owner only has 14 days to use the unit per year. The hotel handles the sales and marketing as well as maintenance of the units.
Compared to Manila, the condotel investment in Cebu has not yet taken off, Montenegro
said, although adding that interest on this type of investment among Cebuanos has grown.
“The main issue in the past is the diligence and the transparency in the distribution of income share properly. But I think that as more companies become transparent and more diligent in distributing income share then people will continue to invest in this type of investment product,” said Montenegro.
One of the advantages of condotel investment is that you have an asset that you don’t have to worry about, he said.
“The hotel assumes the risk on behalf of the buyer. The maintenance, the sourcing of the business and the longevity of the asset is properly maintained by the hotel operator,” he said.
Amid the proliferation of new hotels in the city, Sarah Mascariñas, the hotel’s director for sales, said Quest Hotel has remained competitive.
“The hotel has a different business mix. It also has a very strong management team so it is run professionally. Our market is very robust with corporate as our base market, on top of leisure and travel. Our first quarter is the strongest so far. We have a pretty good run,” she said.
The hotel is now bracing for the influx of tourists for the Eucharistic Congress in 2016.
FLI reported a net income of P4 billion in 2013, up by 14 percent in 2012. The Gotianun-led firm attributed the increase in profits to the 16 percent increase in total revenues from its residential, office and commercial business units to P13.6 billion in 2013.
Published in the Sun.Star Cebu newspaper on April 23, 2014.