Grand Cenia Earning Opportunities
Condotel and Residences
Archbishop Reyes Cebu City Philippines
Earning from the Condotel Unit
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The condotel unit owners shall enter into a rental pool agreement with the developer and subsequently turn over their units to the rental pool. A hotel operator will then manage the operation of the rental pool into a functional hotel. At the start of hotel operations and upon full payment of the condotel unit, the condotel unit owners will earn from the resulting profit of the hotel operations.
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The Condotel Rental Pool
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As all condotel units are required to be entered into the rental pool for hotel business operations, there would be a total of 432 condotel units in the rental pool.
Typical condotel units will have a standard size of 24.27 sqm, There are special condotel units on the 7th and 8th floors which will feature open patios to take advantage of their view of the city, the surrounding mountains and the swimming pool deck and landscaped area. There are also a number of condotel suite units which feature a hotel bedroom separate from the room receiving area. These units are sold and delivered bare of finishing and furnishing.
All condotel units, upon payment of the mandatory joining fees, would then be furnished and equipped with all the necessary and standard features of a Grand Cenia Hotel room. Some condotel units will be converted to twin-bed rooms (double single beds) or single-bed rooms (queen-size). Bigger hotel rooms and adjoining units can be transformed and offered by the hotel as deluxe or suite rooms for guests. The furniture, fixtures and equipment shall be part of the unit to be turned over to the rental pool. Owner’s right for the usage of building common areas shall also be signed over for the use of the hotel guests.
No condotel unit will be excluded from the rental pool assignment for hotel operation usage. The perpetual assignment of the condotel units to the rental pool for hotel operation use will be annotated on the title of the condotel units and shall form part of the unit’s usage restrictions. Condotel unit owners are not required to purchase parking slots since the parking slots shall be part of the areas that will be leased by the hotel operation business from the project.
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Rental Pool Income Computation
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The income to be allocated as the Rental Pool Income is derived from the proceeds generated from Hotel Business operations of the Rental Pool less the service fee of the Hotel Operator, operating expenses, and other expenses relevant to the hotel operation.
This cash value net of hotel operation expenses will be the total income distributable to the rental pool The condotel unit owner’s individual share of the income shall be distributed quarterly. Not yet included in the deductions are the association dues that the condotel unit owners would have to pay as part of the Grand Cenia Condominium Corporation Association.
The hotel operator has the right to deduct these association dues from the income of the rental pool instead of collecting it from the individual units owners.
The condotel unit owner will not receive income from the facilities and amenities offered by the hotel. The asset contributed by the rental pool is limited to the rooms being utilized for the hotel operations. The hotel developer will retain titles to the food and beverage areas and manage it to complement and enhance hotel operations.
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Sample Income and ROI Computation
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