FIRST-time property investor Alfredo Uy has proven that his money can work for him instead of him working for the money. He invested in the condotel project of Filinvest Land Inc. in Cebu, the Grand Cenia. Combined through an asset pool, the Grand Cenia condotels are used as rooms of affiliate Quest Hotel and Conference Center Cebu.
The hotel distributes rental income to each qualified condotel unit owner quarterly. Uy just got his share for the last quarter of 2014 and it increased by 40 percent compared to the same quarter in 2013, the company said.
“I feel proud that I am part owner of the successful condotel of Filinvest here in Cebu. Every quarter I earn an added income that can offset ownership expenses,” Uy said.
Average rental income
Grand Cenia condotel owners have so far earned from an average of 35 to 40 percent year-on-year rental income that Filinvest distributes through Prosperity Specialists Resources, Inc. (Prosper), its condotel management company.
This is about P20,000 to P55,000 in additional income for the condotel owners, according to Prosper president Tristan Las Marias. It was an average P49,000 last quarter, he added.
Overall, Grand Cenia earnings in 2014 increased by 14.1 percent compared to the previous year, he disclosed.
“Grand Cenia condotel unit owners benefit from Cebu’s bullish hotel business, generating a steady flow of recurring income with a possible upside on the real estate’s value appreciation,” he noted.
Better passive income
A restaurant owner, Uy said the passive income he earns is so much better than investing in just a residential unit for lease because he gets professional help keeping the place clean and intact.
“I avoid the hassle and headache of maintaining the unit myself if it is just a condo,” he pointed out.
Uy also said he is excited to avail himself of his free condotel use allocated on a yearly basis. “It is high time I reward myself and enjoy the amenities of the hotel,” he added.
Another Grand Cenia condotel owner is Ms Loida Yu, a bag designer-entrepreneur, who is also satisfied with her property investments with Filinvest’s Cebu condotel, having also received her ninth share of the rental income since the last quarter of 2012.
“Hopefully the rental income gets better over the years. But so far I am satisfied that I am earning from this investment,” she said.
Yu also wants to share how the hotel can improve the hotel shop and draw more condotel guests.
James Montenegro, area general manager for Quest Hotel and Crimson Mactan Resorts, attributed the significant increase in the rental income share for each qualified condotel unit owner to the high average occupancy performance of the hotel for the last quarter.
“Ät 81 percent is the best so far since the hotel started operations,” he disclosed.
“The hotel’s ability to attract more and more returning guests and longer-staying corporate clients during the period led to the increase in rental income share of qualified condotel owners,” Montenegro said.
“We also have to credit our sales team for their tireless efforts to aggressively market the property both locally and abroad,” he added, as he also noted that the previous quarter was a holiday season.
A member of the international chain hotels by Aston International, Quest Hotel forms part of the 25-storey Grand Cenia at Archbishop Reyes ave. across Cebu Business Park.
Some 119 residential condominium units are located at the 19th to 25th floors, while 432 condotel units are used by Quest Hotel in the 8th to 18th floors.
Other than Grand Cenia, Filinvest is constructing the 50.4-hectare business and residential community City di Mare (City by the Sea) at South Road Properties.
The Gotianun-owned real estate firm also a has 3-hectare One Oasis Cebu, which is an exclusive, resort-style, mid-rise condo community in Mabolo district, just five minutes away from the Cebu Business Park and Asiatown It Park.
Developing high-value properties in Cebu since 1997, Filinvest is also expanding Seascapes and Aldea del Sol in Mactan, and Escala at Corona del Mar in Talisay City.